Rocket/Redfin deal modest net negative for Zillow for sale unit, says Barclays

Commenting on Rocket Companies’ (RKT) announcement that it had entered a definitive agreement to acquire Redfin (RDFN) for $1.75B, Barclays sees a “modest” net negative for Zillow’s (Z) (ZG) comprehensive for sale business amid increased competition, as Rocket and Redfin should be a stronger, comprehensive solution once integrated. The firm sees the incremental threat to Zillow as likely more of a risk later in 2026 and into 2027, and notes that the transaction will not impact the previously announced Zillow/Redfin partnership on the rentals side. The firm has an Underweight rating and $64 price target on Zillow shares.