Zillow Group Class C (Z) has received a new Hold rating, initiated by William Blair analyst, Stephen Sheldon.
Stephen Sheldon has given his Hold rating due to a combination of factors influencing Zillow Group Class C’s stock. Zillow is recognized as a leader in the home search portal market, benefiting from significant visitor traffic and a strong position in the industry. This leadership is bolstered by the potential for a housing market recovery, which could improve Zillow’s monetization prospects as home volumes increase.
However, the company faces challenges that temper its growth potential. The competition is becoming more intense, particularly from CoStar’s Homes.com and Rocket’s mortgage services, which may necessitate increased spending to maintain Zillow’s market position. Additionally, potential changes in industry regulations and buyer-side commission rates could impact Zillow’s revenue streams, given its current reliance on buyer-side agents. These factors, combined with valuation metrics that suggest limited upside, contribute to the Hold rating.
According to TipRanks, Sheldon is a 2-star analyst with an average return of -1.3% and a 42.86% success rate. Sheldon covers the Technology sector, focusing on stocks such as Olo, Udemy Inc, and Par Technology.