Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Tuesday, Zillow Group Inc . (NASDAQ:ZG), currently trading at $66.98, received a steady outlook from KeyBanc, with analysts reiterating an Overweight rating and maintaining the $85.00 price target. According to InvestingPro data, the stock has shown remarkable strength with a 63% return over the past year, despite recent volatility. The firm’s analysts project that Zillow will deliver strong first-quarter results, surpassing both guidance and consensus estimates. With earnings scheduled for May 7th and analysts forecasting EPS of $1.87 for FY2025, expectations remain high. However, they anticipate that due to macroeconomic uncertainty and fluctuations in interest rates, Zillow is unlikely to revise its 2025 earnings outlook upward.
In their analysis, KeyBanc noted minimal adjustments to their 2025 revenue estimates for Zillow, but they have slightly reduced their expectations for 2025 EBITDA. This revision reflects the anticipated increase in investments towards growth initiatives. InvestingPro analysis reveals strong fundamentals, with a healthy current ratio of 2.81 and revenue growth of nearly 15% in the last twelve months. Despite these adjustments, KeyBanc analysts express confidence in an upward trajectory for Zillow’s estimates throughout the year.
The analysts’ optimism is based on several factors that they believe will contribute to Zillow’s performance. They expect the company to continue gaining market share and to benefit from a modest recovery in the market. Additionally, they underscore Zillow’s disciplined approach to cost management as a key element that will support the company’s financial health.
KeyBanc’s commentary underscores their belief in Zillow’s potential for growth and profitability. They highlight the company’s strategic investments and operational efficiency as crucial drivers of its success. InvestingPro identifies several positive indicators, including strong cash position and liquid assets exceeding short-term obligations. While acknowledging the broader economic challenges, KeyBanc maintains a positive outlook on Zillow’s ability to navigate the volatile landscape. Discover more insights and 8 additional ProTips for Zillow in the comprehensive Pro Research Report.
In conclusion, KeyBanc’s analysis suggests that Zillow is well-positioned to outperform expectations in the near term. Their maintained Overweight rating and $85.00 price target reflect a steady vote of confidence in the company’s strategy and market position amidst uncertain economic conditions.
In other recent news, Zillow Group has reported a mixed set of developments that are crucial for investors to consider. Zillow’s fourth-quarter results surpassed some analyst forecasts but did not meet the more robust expectations anticipated by others, leading to a cautious outlook for the first quarter of 2025. Despite this, analysts from firms like JMP Securities and RBC Capital Markets maintain optimistic ratings, with JMP reiterating a Market Outperform rating and a $92 price target, and RBC maintaining an Outperform rating with an $88 target. KeyBanc Capital Markets also reaffirmed an Overweight rating with an $85 target, noting that updates to the National Association of Realtors’ Clear Cooperation Policy favor Zillow’s listing acquisition process.
Piper Sandler, maintaining an Overweight rating with a $90 price target, highlighted Zillow’s significant growth in Flex (NASDAQ:FLEX) revenue and its expanding market share through the Premier Agent program. Meanwhile, Bernstein SocGen Group kept a Market Perform rating with a $65 price target, citing the need for Zillow to return to normal operations and gain market share in the upcoming quarters. Despite some bearish sentiment due to macroeconomic factors and ongoing litigation, analysts generally recognize Zillow’s dominant position in the real estate portal market. The company’s strategic initiatives, such as expanding Enhanced Markets and focusing on its Mortgage, Showcase, and Flex services, are seen as potential drivers for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.