Zillow stock rating initiated at Market Outperform by JMP on user base
Investing.com
Published Jun 27, 2025 12:16PM ET
Investing.com - JMP Securities initiated coverage on Zillow Group (NASDAQ:ZG) with a Market Outperform rating and an $87.00 price target on Thursday. According to InvestingPro data, Zillow currently trades above its Fair Value, with a market capitalization of $16.6 billion.
The research firm highlighted Zillow's "sticky and scaled base of app users," noting that the platform reaches approximately two-thirds of real estate shoppers during their home-buying journeys. This extensive reach enables Zillow to effectively connect users with real estate agents.
JMP pointed to Zillow's strategic reduction of Premier Agent partners by 60% between 2015 and the end of 2023, which has given the company increased leverage over its remaining partner agents. The firm views this consolidation as a positive development for Zillow's business model.
The analyst noted that Zillow's rollout of Enhanced Markets and recent acquisitions, including Follow Up Boss, provide the company with more data and control over how agents convert leads. These improvements are expected to drive better conversion rates and increased attachment of adjacent products like Zillow Home Loans and closing services.
JMP described Zillow as "the cleanest story of the group," citing its clear growth trajectory and path for EBITDA margin expansion. The firm expects consistent execution from Zillow and believes shares will "compound higher" over time.
In other recent news, Zillow Group's first-quarter earnings exceeded expectations, with a 2% revenue beat and a 10% EBITDA beat, as reported by Cantor Fitzgerald. Despite this strong performance, Zillow's second-quarter guidance fell slightly below analyst projections, with revenue and EBITDA forecasts missing expectations by 1% and 10%, respectively. Benchmark analyst Daniel Kurnos adjusted Zillow's price target to $95, down from $110, maintaining a Buy rating, citing the company's unchanged full-year guidance and strong performance in the Rentals segment. Piper Sandler also expressed confidence in Zillow, raising their price target to $82 and maintaining an Overweight rating, highlighting the company's proactive product initiatives and path to GAAP net income profitability.
Meanwhile, Bernstein SocGen Group maintained a Market Perform rating with a $65 price target, emphasizing Zillow's growth initiatives and market share gains in the Rentals sector. Cantor Fitzgerald kept a Neutral rating with a $60 target, noting operational progress but a cautious outlook due to real estate market volatility. The analysts at Piper Sandler have increased their revenue and EBITDA estimates for Zillow in 2025 and 2026, reflecting optimism about the company's future growth potential. Overall, analysts are showing varied levels of optimism about Zillow's prospects, with some adjusting their price targets and ratings based on recent earnings and future guidance.
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Written By: Investing.com
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