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On Monday, Bernstein SocGen Group analysts maintained a Market Perform rating and a $65.00 price target on Zillow Group stock (NASDAQ: NASDAQ:ZG), close to its current trading price of $64.80. With analyst targets ranging from $60 to $100, and the stock showing a remarkable 65% return over the past year, market sentiment remains mixed. Analysts reiterated their position following discussions with Zillow’s CEO Jeremy Wacksman and CFO Jeremy Hofmann at the Strategic Decisions Conference in New York.
The analysts hosted a fireside chat and investor meetings where the primary focus was Zillow’s progress towards its "housing super-app" vision. The company aims to expand its market share despite challenging conditions. According to InvestingPro analysis, Zillow’s financial health score is rated as "FAIR," with particularly strong cash flow metrics. Analysts noted positive developments in Zillow’s growth initiatives, which are beginning to take shape.
Zillow’s Enhanced Markets strategy is expected to continue evolving, though its pace will be influenced by factors such as agent training and the adoption and capacity of loan officers. The company’s management is optimistic about the opportunities in the Rentals sector, driven by the number of multifamily listings.
The analysts remain confident in the durability of Zillow’s market share gains in the Rentals sector. This confidence is supported by the company’s strategic initiatives and management’s outlook on the sector’s potential.
In other recent news, Zillow Group’s first-quarter earnings for 2025 have drawn varied analyst reactions. Piper Sandler maintained an Overweight rating on Zillow, lifting the price target to $82, citing the company’s strong balance sheet and path to profitability. Benchmark, however, adjusted its price target to $95 from $110 while maintaining a Buy rating, noting the company’s rental segment’s impressive 40% growth despite challenges in residential revenue. Meanwhile, Cantor Fitzgerald held a Neutral rating with a $60 target, highlighting a 2% revenue beat and a 10% EBITDA beat, though noting the real estate market’s volatility as a limiting factor.
KeyBanc also retained an Overweight rating with an $85 target, acknowledging strong first-quarter results but anticipating no upward revision in Zillow’s 2025 earnings outlook due to macroeconomic uncertainties. Zillow’s Rentals and Mortgages segments showed significant growth, with over 30% year-over-year revenue increases. Analysts pointed to Zillow’s technological edge and cost management as key factors supporting its financial health. Despite the mixed views, analysts generally express optimism about Zillow’s strategic positioning and potential for growth. Zillow’s ongoing efforts in executing product initiatives and reducing debt were noted as positive steps towards achieving its financial goals.
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