Benchmark Co. Sticks to Their Buy Rating for Zillow Group Inc

By Austin Angelo

In a report released today, Daniel Kurnos from Benchmark Co. maintained a Buy rating on Zillow Group Inc (NASDAQ: Z), with a price target of $64. The company’s shares closed yesterday at $53.60.

Kurnos commented:

“We see Zillow being able to win market share via its dominant consumer funnel, reducing customer acquisition costs, while leveraging its size to and scale to steadily grow its portfolio, even before any ancillary benefits to lead-gen, pricing and mortgage are achieved. The lead-gen decision to qualify consumers before passing the lead along to a responsive agent seems like an enhanced blast from the past. We noted years ago that Zillow’s initial business model included an aggressive daisy-chaining process that significantly enhanced monetization but caused agent friction and reduced conversion rates. With most of the weaker realtors churned from the system and a more efficient structure dictated by dynamic auction market pricing, we see a path to improved conversion with less friction, resulting in lead-gen pricing support and even potentially further ARPA upside.”

According to TipRanks.com, Kurnos is a 4-star analyst with an average return of 9.6% and a 51.8% success rate. Kurnos covers the Services sector, focusing on stocks such as Chicken Soup For The Soul Entertainment Inc, Sinclair Broadcast, and 1-800 Flowers.com.

Zillow Group Inc has an analyst consensus of Moderate Buy, with a price target consensus of $56.40.

The company has a one-year high of $59.99 and a one-year low of $34.52. Currently, Zillow Group Inc has an average volume of 1.44M.

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Zillow Group, Inc. engages in the provision of real estate and home-related information marketplaces on mobile and the web. Its brand portfolio is comprised of Zillow, Trulia, StreetEasy, HotPads, and Naked Apartments. It also houses the business brands Bridge Interactive, Dotloop, Mortech, and Retsly. The company was founded by Richard N. Barton and Lloyd D.