Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Bernstein analyst Nikhil Devnani raised the price target on Zillow Group (NASDAQ:ZG) to $75.00 from $65.00 while maintaining a Market Perform rating ahead of the company’s second-quarter earnings report. The stock has shown remarkable momentum, delivering a 62.5% return over the past year, according to InvestingPro data.
Zillow is scheduled to report its Q2 2025 results on August 6, with Bernstein expecting an in-line performance due to weakness in housing data during the quarter. The firm identified Rentals and Mortgage segments as potential bright spots in the upcoming report. InvestingPro analysis indicates that analysts expect the company to turn profitable this year, with projected earnings per share of $1.76 for FY2025.
Bernstein slightly reduced its revenue outlook for Zillow to reflect a softer industry backdrop but noted that market focus will likely shift toward potential share gains in the second half of 2025, particularly given the recent expansion in Enhanced Markets.
The new $75 price target implies a 20x enterprise value to next twelve months adjusted EBITDA multiple, with the increase primarily resulting from a model roll-forward rather than changes to core assumptions.
Zillow faces a competitive landscape that includes Compass, Rocket, and Homes.com, with Bernstein suggesting that revenue improvement would be the company’s best response to competitive pressures and industry headlines.
In other recent news, Zillow Group has been the focus of multiple analyst reports highlighting its strategic initiatives and market performance. DA Davidson has maintained its Buy rating on Zillow, setting a price target of $85, citing the company’s growing market share in home listings. Similarly, Citi reiterated its Buy rating with a target of $83, noting a significant increase in the adoption of Zillow Showcase Listings in June. JMP Securities initiated coverage with a Market Outperform rating and an $87 price target, emphasizing Zillow’s extensive user base and its ability to connect home buyers with real estate agents effectively.
In contrast, Bernstein maintained a Market Perform rating with a $65 price target after discussions with Zillow’s executives about their "housing super-app" vision. Piper Sandler also maintained a positive outlook with an Overweight rating and an $82 target, following discussions on Zillow’s Residential guidance and Rentals strategy. These developments indicate a mix of optimism and caution among analysts regarding Zillow’s growth prospects and market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.