Wedbush upgrades Zillow to Outperform, raises price target to $80

As previously reported, Wedbush analyst Jay McCanless upgraded Zillow to Outperform from Neutral with a price target of $80, up from $50. In addition to the potentially positive catalyst of lower mortgage rates for Zillow’s core brokerage business, the firm sees Zillow’s software and services initiatives adding to potential upside risk to its estimates. S&S revenues are reported in the Residential revenue line item, and Wedbush believes the S&S offerings, along with Zillow’s core brokerage revenues, have allowed total revenues to grow faster than the national existing home market for several quarters now.