Zillow Group price target raised to $38 from $31 at Wedbush

Wedbush analyst Jay McCanless raised the firm’s price target on Zillow Group to $38 from $31 and keeps a Neutral rating on the shares. The firm’s previous thesis assumed Zillow would lower opex levels and focus on GAAP profitability. That does not appear to be the case based on the Q4 opex levels that exceeded Wedbush’s estimates for the second quarter in a row. Zillow’s anticipates opex will be flat sequentially from Q4 2022 to Q1 2023 versus the firm’s prior forecast for a sequential decline in sales and opex.