Bank of America Securities analyst Curtis Nagle reiterated a Hold rating on Zillow Group Class A today and set a price target of $88.00.
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Curtis Nagle has given his Hold rating due to a combination of factors influencing Zillow Group’s current and future performance. While there is an expectation for Zillow to slightly surpass third-quarter revenue and EBITDA estimates, the potential for a conservative fourth-quarter guidance poses a risk of falling short of market expectations. This cautious outlook is partly due to ongoing affordability challenges in the housing market, despite some positive indicators such as easing interest rates and increased inventory levels.
Moreover, while Zillow is showing promising signs of operational efficiency and monetization in various segments, including rentals and mortgages, the macroeconomic environment remains a concern. High interest rates continue to impact affordability, limiting transaction growth and the potential for upward revisions in near-term estimates. Given these mixed signals, Nagle maintains a Neutral stance, reflecting a balanced view between Zillow’s constructive execution and the broader economic uncertainties.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $80.00 price target.