JMP Securities analyst Nicholas Jones CFA has maintained their bullish stance on ZG stock, giving a Buy rating on March 6.
Nicholas Jones CFA has given his Buy rating due to a combination of factors that highlight Zillow Group’s strong positioning and growth potential within the residential real estate market. Zillow’s vast audience size, with 221 million average monthly unique visitors, significantly surpasses its competitors, positioning the company for sustained growth and market share gains across its business segments. The mortgage industry, with an estimated $1.8 trillion in originations in 2024, is large enough to accommodate multiple players, and Zillow’s strategic partnerships, such as the one with Redfin, are expected to remain intact and beneficial.
Moreover, Zillow’s super app strategy and its dominant industry position are seen as key drivers of its continued success. The company’s strong and improving EBITDA margin profile, along with its growth relative to peers, supports a valuation premium. Jones maintains a price target of $92 based on an EV/2026E adjusted EBITDA multiple of approximately 25x, reflecting confidence in Zillow’s ability to outperform in a challenging industry landscape. Thus, the Buy rating is supported by Zillow’s robust market positioning and strategic initiatives.
In another report released on March 6, Citi also reiterated a Buy rating on the stock with a $98.00 price target.
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