Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Thursday, Cantor Fitzgerald maintained a Neutral rating on Zillow Group (NASDAQ:ZG) with a price target of $60.00, placing it at the lower end of the analyst range that extends up to $110. The firm’s analysis followed Zillow’s first-quarter results, which showed a 2% revenue beat and a 10% EBITDA beat compared to Wall Street’s expectations. With a market capitalization of $16.3 billion, InvestingPro analysis indicates the stock is currently trading above its Fair Value. The company’s Residential segment reported a 6% year-over-year increase, surpassing industry volumes by 3 percentage points. Both Rentals and Mortgages segments experienced significant growth, with revenue increasing over 30% year-over-year for each. This performance contributed to Zillow’s overall revenue growth of 15% over the last twelve months, with InvestingPro data showing strong financial health metrics, including a comfortable current ratio of 2.81 and minimal debt exposure.
Despite the positive performance in the first quarter, Zillow provided guidance for the second quarter of 2025 that was slightly below analyst expectations, with revenue and EBITDA forecasts falling short by 1% and 10% at the midpoint, respectively. Nevertheless, the company reaffirmed its full-year 2025 guidance of low to mid-teens revenue growth.
Cantor Fitzgerald pointed out that while Zillow is making operational progress, including the expansion of enhanced markets, scaling of its mortgage offerings, and the aggregation of supply in rentals, the real estate market’s volatility influenced by fluctuating interest rates is expected to limit the company’s core residential growth in the near term.
The firm decided to largely maintain its EBITDA estimates for the fiscal year 2026 and reiterated its Neutral stance with a $60 price target, indicating a cautious outlook on Zillow’s stock performance amid uncertain real estate market conditions. For deeper insights into Zillow’s financial health and growth prospects, including 8 additional exclusive ProTips and comprehensive valuation metrics, investors can access the full analysis through InvestingPro’s detailed research report.
In other recent news, Zillow Group has been the subject of several analyst reviews following its financial performance and strategic developments. Piper Sandler increased its price target for Zillow to $82, maintaining an Overweight rating, after the company’s first-quarter results showed revenues 2% higher than expected and EBITDA exceeding forecasts by 8%. Piper Sandler also highlighted the company’s effective cost control and product initiatives, projecting increased revenue and EBITDA for 2025 and 2026. KeyBanc reiterated its Overweight rating with an $85 price target, expressing confidence in Zillow’s ability to gain market share and manage costs despite macroeconomic uncertainties.
JMP Securities maintained its Market Outperform rating with a $92 price target, noting Zillow’s robust position in the property technology sector and its potential for valuation multiple expansion. KeyBanc also commented on the positive implications of the National Association of Realtors’ updated Clear Cooperation Policy for Zillow, emphasizing the company’s diversified access to listings data. RBC Capital Markets reiterated an Outperform rating with an $88 target, highlighting Zillow’s potential for above-market growth due to its enhanced market strategies. These developments underscore Zillow’s strategic positioning and the confidence analysts have in its future performance.
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