Analyst Ronald Josey from Citi maintained a Buy rating on Zillow Group Class A and keeping the price target at $100.00.
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Ronald Josey has given his Buy rating due to a combination of factors, including the significant increase in Zillow Showcase Listings (ZSLs), which rose by 35% month-over-month in September. This increase highlights greater agent adoption and the potential for future growth, especially with new partnerships with over 50 national brokerages. Despite the current challenges in the housing market and brokerage consolidation, Zillow’s recent performance and strategic initiatives suggest a positive outlook.
Furthermore, the expansion of Enhanced Markets and improved agent productivity tools are expected to lead to better For Sale conversion rates. With Zillow’s shares having declined by approximately 13.4% since late September, compared to a relatively stable S&P 500, Josey sees an opportunity to capitalize on this market dislocation. The expectation of better-than-consensus revenue and EBITDA for the third quarter further supports the Buy rating, along with a target price of $100.
According to TipRanks, Josey is a 5-star analyst with an average return of 24.6% and a 60.54% success rate. Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Zillow Group Class A.