Zillow Group (Z) (NASDAQ:ZG) shares were raised to Market Outperform from Market Perform at JMP Securities on Tuesday, with the firm assigning the stock a price target of $60 per share.
Analysts at JMP Securities said in a research note that the company has a strong foundation for share gains amid industry normalization.
"We believe consensus estimates are too low for 2025 and 2026 given building pent-up demand and increasing expectations that rates will begin
to come down in 2H24," the analysts noted. "We are increasing our top- and bottom-line estimates to reflect our company and industry analysis, underpinned by modest share gains by Zillow Group, Inc. and normalizing existing home transactions."
Furthermore, the firm sees upside to its already above-consensus numbers "as ZG scales its newer solutions." The firm acknowledged that the NAR antitrust lawsuit headlines are likely to create near-term stock price volatility, but they "view ZG as well positioned to navigate a variety of outcomes given its ubiquitous position within the vertical."
"We view ZG's current share price as a compelling opportunity and upgrade our rating to Market Outperform, from Market Perform," the analysts concluded.