In a report released today, Nikhil Devnani from Bernstein maintained a Hold rating on Zillow Group Class A (ZG – Research Report), with a price target of $65.00.
Nikhil Devnani has given his Hold rating due to a combination of factors impacting Zillow Group Class A’s stock. One of the main reasons is the anticipation of a strong fourth quarter, with existing home sales transactions expected to exceed market expectations both in terms of volume and pricing. This likely positive performance is already somewhat reflected in the current stock price, which limits the potential for significant upside.
Additionally, while Zillow is anticipated to continue executing well into 2025, the market’s projected mid-teens revenue growth suggests limited room for substantial outperformance. Despite optimism about Zillow’s operational execution and potential revenue beats, the current valuation appears to capture much of this potential, resulting in a Hold recommendation. The focus is also on how Zillow will guide its growth strategy for 2025, particularly in gaining market share and expanding key product lines like Showcase and Zillow Home Loans, which adds a layer of uncertainty to the stock’s future trajectory.
Devnani covers the Consumer Cyclical sector, focusing on stocks such as Wayfair, Etsy, and eBay. According to TipRanks, Devnani has an average return of 26.6% and an 80.00% success rate on recommended stocks.
In another report released on January 30, Robert W. Baird also initiated coverage with a Hold rating on the stock with a $88.00 price target.