Zillow Group upgraded to Outperform from Market Perform at JMP Securities

JMP Securities analyst Nicholas Jones upgraded Zillow Group (ZG) to Outperform from Market Perform with a $60 price target. The analyst believes consensus estimates for Zillow are too low for 2025 and 2026 given building pent-up demand and increasing expectations that rates will begin to come down in the second half of 2024. As the company benefits from JMP’s estimated growth and profitability patterns, the stock price will benefit from multiple expansion, the analyst tells investors in a research note. The firm increased our top- and bottom-line estimates to reflect its company and industry analysis, underpinned by modest share gains by Zillow.