Zillow Group (NASDAQ:Z) (NASDAQ:ZG) and Redfin (NASDAQ:RDFN) received new coverage today from analyst Dae Lee of J.P. Morgan. Lee has started off coverage on the two with a Buy rating on Zillow and a Hold rating on Redfin. In addition, he assigned a $48 price target for the former and an $8 price target for the latter.
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Although Lee believes that both can drive long-term upside once the housing market recovers, Zillow is preferred due to its large scale, business model, and strong margins. In addition, he also pointed to Zillow’s buyback program, which he believes will help the firm emerge stronger from the current housing market situation.
Overall, Wall Street appears to agree with Dae Lee’s assessment, as analyst consensus sees upside potential for Zillow and very slight downside risk for Redfin.