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Investing.com - UBS lowered its price target on Zillow Group (NASDAQ:ZG) to $92.00 from $95.00 on Friday, while maintaining a Buy rating on the real estate technology company. Zillow currently trades at $68.75, with analyst targets ranging from $66 to $105, according to InvestingPro data.
The adjustment follows UBS’s revision of fiscal year 2026 estimates, increasing revenue growth projections to 15.2% year-over-year while reducing EBITDA margin expectations to 26.6% from the previous 28.5% forecast.
UBS cited better-than-expected third-quarter performance and fourth-quarter guidance, particularly in Zillow’s Residential segment, as factors influencing the updated outlook.
Despite the price target reduction, UBS remains optimistic about Zillow’s prospects, noting that continued investments in Rentals and Mortgage businesses are expected to remain elevated longer than previously anticipated.
The firm maintains that Zillow offers a favorable risk/reward ratio and an attractive 12-month catalyst path, with shares currently trading at 17 times estimated FY27 EBITDA.
In other recent news, Zillow Group reported third-quarter earnings that surpassed analyst expectations. The company posted an adjusted earnings per share of $0.44, slightly above the analyst estimate of $0.43. Revenue for the quarter reached $676 million, exceeding the consensus estimate of $670.1 million and marking a 16% year-over-year increase. This growth outpaced the broader real estate market’s transaction value growth of approximately 5%. Additionally, Zillow’s third-quarter EBITDA came in at $165 million, surpassing both Goldman Sachs’ estimates and consensus expectations. In response to these results, Goldman Sachs raised its price target on Zillow to $78 from $74, while maintaining a Neutral rating. These developments highlight Zillow’s strong performance in the recent quarter.
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