In a report released today, Robert Mollins from Gordon Haskett Capital Corporation upgraded Zillow Group Class C to a Buy, with a price target of $90.00.
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Robert Mollins has given his Buy rating due to a combination of factors that suggest Zillow Group Class C’s current share price presents a compelling buying opportunity. The recent decline in Zillow’s stock, driven by competitive and legal concerns, is seen as an overreaction. Despite fears that Compass’s acquisition of Anywhere Real Estate could threaten Zillow’s market position, Zillow’s significantly higher site traffic suggests it can maintain its competitive edge.
Additionally, historical attempts by competitors like Homes.com to challenge Zillow’s dominance have had minimal impact. The recent legal challenges, including an FTC lawsuit, have also contributed to the stock’s decline, but Mollins believes these issues are overstated. Zillow’s ability to grow its rentals business and its continued innovation in a tough market further support the Buy rating, with a price target set at $90 based on future earnings projections.
In another report released on September 30, J.P. Morgan also reiterated a Buy rating on the stock with a $94.00 price target.
Based on the recent corporate insider activity of 125 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of Z in relation to earlier this year.