Gold prices rebound as risk-off mood grips markets; US payroll data awaited
Investing.com - Mizuho initiated coverage on Zillow Group (NASDAQ:ZG) with an Outperform rating and a $100 price target, representing a 30% upside potential from current levels. The stock, currently trading at $77.98, has shown strong momentum with a 21.55% return over the past year, though InvestingPro analysis indicates the stock is trading above its Fair Value.
The research firm views Zillow as a "product-driven growth story with a call option on housing improvement," noting the company has performed well despite challenging housing market conditions.
Mizuho highlighted that Zillow has achieved 15% top-line growth in both 2024 and estimated 2025, even with essentially flat existing home sales growth during this period.
The firm forecasts above-consensus revenue growth of 15% in 2026 and 17% in 2027, primarily driven by the company’s mortgage (ZHL) and rental segments as these faster-growing businesses increase their contribution to overall revenue. For deeper insights into Zillow’s growth potential and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
Mizuho expects Zillow’s adjusted EBITDA to grow at a compound rate exceeding 30% from 2025 to 2027, citing the company’s disciplined expense management and ability to generate more revenue per transaction by expanding its product offerings. This growth trajectory aligns with analysts’ expectations of profitability this year, despite current negative earnings of -$0.26 per share.
In other recent news, Zillow Group has seen significant developments that investors should note. Bernstein has upgraded Zillow’s stock rating to Outperform, raising its price target from $75.00 to $105.00, citing strong revenue growth and new business segments like Rentals and Showcase. Additionally, RBC Capital has maintained its Outperform rating with a $95.00 price target, highlighting Zillow’s resilience in AI and its strategic market offerings. Jefferies also reiterated a Buy rating with a $100.00 price target following a merger announcement between Compass and Anywhere Real Estate, two major U.S. brokerages. Despite legal challenges, Bernstein continues to hold an Outperform rating, suggesting the lawsuit may not significantly impact Zillow. Meanwhile, JMP Securities sees the recent 9% stock pullback as a buying opportunity, maintaining a Market Outperform rating with an $87.00 price target. These recent developments reflect a generally positive outlook from analysts on Zillow’s market position and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.