Zillow initiated with a Market Perform at Keefe Bruyette

Keefe Bruyette initiated coverage of Zillow (Z) with a Market Perform rating and $80 price target Zillow has built a category-leading brand in home search, capturing nearly 70% of U.S. home shoppers in its funnel, but the company has a mixed track record of monetizing this large audience, the analyst tells investors in a research note. While early data from initial “enhanced markets” is promising and Zillow’s financial targets suggest upside could be meaningful, the strategy’s scalability is a show-me story, the firm adds.