Zillow, Redfin said to be investigated by FTC, says Keefe Bruyette

Keefe Bruyette analyst Ryan Tomasello lowered the firm’s price target on Zillow (Z) to $76 from $80 and keeps a Market Perform rating on the shares, while noting that an article from The Capitol Forum published last Friday said that the FTC has launched an investigation into Zillow’s partnership with Redfin’s (RDFN) rentals business. The investigation reportedly relates to whether the partnership effectively amounts to a merger that could have anti-competitive impacts, the analyst noted. In a preview of Zillow’s Q1 report, the firm is also reducing 2025 estimates modestly on slower housing data, telling investors that it is tactically “cautious” ahead of Q1 results as consensus residential revenue growth estimates for the balance of the year “seem aggressive.”