Citi analyst Ronald Josey reiterated a Buy rating on Zillow Group Class A (ZG – Research Report) today and set a price target of $98.00.
Ronald Josey has given his Buy rating due to a combination of factors that highlight Zillow Group’s potential for growth and profitability. One of the key reasons is the company’s successful expansion of its For Sale products and the promising trajectory of its Rentals business. The February Zillow Showcase Listings (ZSL) tracking indicates a significant increase in listings, suggesting a strong revenue run-rate for the first quarter, which supports the company’s growth outlook.
Additionally, Zillow’s Rentals business is scaling effectively, with a substantial number of active rental listings and a large audience reach. This growth in the Rentals segment is seen as a clear path towards achieving the company’s mid-cycle revenue goals. Despite challenges in the real estate market, Zillow’s strategic investments in its product offerings are expected to drive improved growth and profitability, leading to the reiteration of the Buy rating and a target price of $98.
In another report released on February 25, JMP Securities also maintained a Buy rating on the stock with a $92.00 price target.