Zillow share price reaction to NAR settlement ‘overdone,’ says Benchmark

Benchmark notes that shares of Zillow (Z, ZG) sold off sharply once the news of the NAR settlement broke as the multitude of articles “guaranteeing” the death of the real estate agent and the buyer’s commission likely prompted the drop. Given that Zillow has “become both the tech backbone for the real estate industry and generates the vast majority of their revenues from the top 20% of agents,” the firm thinks Zillow could not only be more insulated but also have opportunities to take more wallet share in an a la carte, service-centric marketplace evolution, says the analyst, who calls the share price reaction to the news “overdone.” Benchmark has a Buy rating and $60 price target on Zillow shares.