Zillow initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst Brian Fitzgerald initiated coverage of Zillow (Z) with an Equal Weight rating and $50 price target. The analyst thinks Zillow is positioned “extremely well” to continue to dominate the online residential real estate space once macroeconomic uncertainty goes away and interest rates start moving down. However, the company is highly levered to the economic cycle and its operating results are “overly sensitive” to the macro environment and the level of interest rates, the analyst tells investors in a research note.