Evercore ISI raises Zillow Group stock price target to $95 on solid Q2

Published 07/08/2025, 11:34
Evercore ISI raises Zillow Group stock price target to $95 on solid Q2

Investing.com - Evercore ISI has raised its price target on Zillow Group (NASDAQ:ZG) stock to $95.00 from $90.00 while maintaining an Outperform rating following the company’s second-quarter earnings results. The stock, which has delivered an impressive 102% return over the past year according to InvestingPro data, is currently trading near its 52-week high of $86.58, suggesting significant momentum in the real estate technology sector.

Zillow reported revenue of $655 million, representing 15% year-over-year growth, and EBITDA of $155 million with a 24% margin, both slightly exceeding analyst expectations. The company has updated its full-year revenue growth guidance from low-to-mid teens to mid-teens while reiterating its forecast for EBITDA margin expansion. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.46, indicating robust liquidity to meet short-term obligations.

The real estate platform continues to demonstrate strong competitive positioning with 243 million monthly unique users and app engagement four times higher than its closest competitor. Zillow’s housing super-app strategy is gaining traction, with Enhanced Markets penetration reaching 27% of connections, with management targeting over 35% by year-end.

Zillow Home Loans maintained double-digit adoption rates across Enhanced Markets, while Showcase adoption reached 2.5% of all new for-sale listings. These metrics indicate growing momentum in the company’s integrated services approach.

The rental segment showed particularly strong performance with revenue accelerating to 36% year-over-year growth, and management expects further acceleration in the second half of the year as total active rental listings reached 2.4 million. With a market capitalization of $20.35 billion and analysts setting price targets ranging from $60 to $100, investors seeking deeper insights can access comprehensive valuation metrics and 13 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Zillow Group reported mixed results for the second quarter. The company’s revenue reached $655 million, surpassing analyst expectations of $647.65 million and the company’s own guidance range. This represents a 15% year-over-year revenue growth, notably outpacing the residential real estate industry’s growth of just 1-2% during the same period. However, Zillow’s adjusted earnings per share were $0.40, slightly below the analyst consensus of $0.42. The company achieved an adjusted EBITDA of $155 million with a 24% margin, hitting the high end of its outlook range. Despite these achievements, the stock experienced a slight decline after the results were announced. These developments reflect the company’s ongoing financial performance and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.