Zillow downgraded to Neutral at BofA with housing recovery priced in

As previously reported, BofA downgraded Zillow to Neutral from Buy with a price target of $60, up from $47. The firm believes the stock is pricing a steady recovery in housing in 2024 with shares are up over 40% year-over-year, but it argues that near record low home affordability could limit volume upside, even with lower rates. In addition, real estate commission lawsuits are an overhang on the company’s buy side agent lead generation segment, the analyst tells investors.