Barclays analyst Trevor Young says Zillow Group’s (ZG) “moat remains intact for now” amid competition from Homes.com. The firm says Homes.com has made initial progress in ramping traffic, and that higher app sessions than Zillow points to some habituation. However, it thinks Zillow has a substantial advantage versus Homes.com in terms of brand awareness. Some of the competitive pressure worries are overblown, contends Barclays. Nonetheless, the analyst still sees numerous reasons to be cautious on Zillow shares, including an unclear recovery path for residential real estate as buyers contend with significantly higher mortgage rates, an overcapacity of agents industry-wide, and a changing regulatory backdrop. It keeps an Underweight rating no Zillow with a $35 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ZG:
- Zillow Group (NASDAQ:ZG) Stock: It May be Time to Cut Losses
- Zillow call volume above normal and directionally bullish
- Zillow price target lowered to $70 from $77 at Jefferies
- Zillow Group price target lowered to $60 from $66 at RBC Capital
- Zillow Group price target lowered to $45 from $50 at Canaccord