LONDON (Reuters) - Michael Messara, senior portfolio manager of hedge fund Caledonia, said U.S. property portal Zillow (O:Z) is the firm's biggest ever bet and he expects it to reach an enterprise value of $50 billion.
That would be reached by monitising its audience share, which is 18 times greater than its share of advertising revenue, Messara told the Sohn Conference in London, produced by Bloomberg, and would imply a price of $770 a share.
Messara said Zillow would be the same as the market leaders in other countries and follow a similar valuation path, boosted by its strong and defensible position, focus on mobile technology and "best in class" management.
(Reporting by Simon Jessop and Nishant Kumar; editing by Jason Neely)