Zillow upgraded to Buy at Gordon Haskett after recent share price weakness

As previously reported, Gordon Haskett upgraded Zillow (Z) to Buy from Hold with a $90 price target, citing the belief that the negative sentiment weighing on the shares over the past two weeks creates “a favorable risk/reward.” Shares have declined 17% over the past two weeks following concerns regarding competitive encroachment after Compass (COMP) announced it was acquiring Anywhere Real Estate (HOUS) as well as a recent FTC lawsuit, the analyst noted. On the latter concern, the firm thinks investors have overreacted, noting that Zillow grew its rentals business quickly before the Redfin partnership and would likely experience only a modest headwind if the partnership dissolves. On the former concern, the firm says its work suggests that Zillow “will be able to hold its own” against Compass.