Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Piper Sandler raised its price target on Zillow Group (NASDAQ:ZG) to $94.00 from $82.00 on Thursday, while maintaining an Overweight rating on the real estate technology company. The stock, currently trading at $81.91, has delivered an impressive 102% return over the past year, according to InvestingPro data.
The price target increase follows Zillow’s second-quarter results, which came in approximately 1% ahead of Street expectations for both revenue and EBITDA. The company reported a robust 75.8% gross profit margin and generated $312 million in levered free cash flow over the last twelve months. The adjustment comes after Zillow stock has gained roughly 40% from its April lows, now trading near its 52-week high of $86.58.
Piper Sandler noted that despite a subdued housing market, Zillow continues to execute on its product initiatives while simultaneously reducing debt and repurchasing shares. InvestingPro analysis reveals the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 3.34. The company aims to achieve GAAP net income profitability by the end of 2025, with analysts forecasting positive earnings of $1.76 per share for the year.
The research firm highlighted Zillow’s rentals business as a particular bright spot for the company. Piper Sandler’s increased price target reflects higher estimates for Zillow’s performance in future years.
Zillow continues to position itself for an eventual normalization in the housing market, with Piper Sandler reiterating its Overweight rating based on the company’s execution in challenging market conditions.
In other recent news, Zillow Group reported second-quarter revenue of $655 million, surpassing analyst expectations of $647.65 million and marking a 15% year-over-year increase. The company’s adjusted EBITDA reached $155 million with a 24% margin, slightly exceeding forecasts. However, adjusted earnings per share were $0.40, just below the consensus estimate of $0.42. In response to these results, Evercore ISI raised its price target for Zillow to $95, maintaining an Outperform rating, while Cantor Fitzgerald increased its price target to $74, keeping a Neutral rating. Benchmark also reiterated its Buy rating with a $95 target, citing Zillow’s increased focus on new construction. Zillow’s updated full-year revenue growth guidance now projects mid-teens growth, along with anticipated EBITDA margin expansion. The company highlighted strong performance in its mortgage segment and a 9% year-over-year growth in For Sale revenue. These developments reflect Zillow’s strategic emphasis on diversifying its market segments within the real estate industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.