Zillow Upgraded, Analyst Predicts Strong Growth With Lower Mortgage Rates On The Horizon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 16 2024
0mins
Should l Buy Z?
Source: Benzinga
Zillow Stock Upgrade: Zillow Group, Inc. shares rose after Wedbush upgraded the stock from Neutral to Outperform and increased its price target from $50 to $80, citing potential benefits from lower mortgage rates for its brokerage business.
Revenue Projections: Analyst Jay McCanless raised FY25 revenue estimates to $2.5 billion and AEBITDA to $679 million, with growth expected in Residential and Rental revenues, while also projecting a 5% year-over-year increase in mortgage revenue.
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Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 43.820
Low
70.00
Averages
87.40
High
100.00
Current: 43.820
Low
70.00
Averages
87.40
High
100.00
About Z
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’s affiliates, subsidiaries, and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Future Guidance: Management has guided first-quarter revenue to a range of $700 million to $710 million, surpassing market estimates of $690 million, suggesting ongoing top-line growth potential despite challenges.
- Legal Costs and Competitive Pressure: In the near term, legal expenses and new rivals are weighing on Zillow's valuation; however, if legal spending normalizes and the housing market recovers, it could benefit the company in the long run.
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- Platform Potential: Should Zillow successfully expand its platform to encompass both renting and buying homes, the upside for its stock could be tremendous, potentially attracting more investor interest.
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- Operating Margin Improvement: AWS achieved a 35% operating margin, slightly widening from the previous quarter, indicating positive progress in cost control and efficiency enhancement, thereby strengthening its profitability.
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