Zillow Group Inc Receives a Rating Update from a Top Analyst

By Ryan Adsit

In a report released today, Jason Helfstein from Oppenheimer maintained a Hold rating on Zillow Group Inc (NASDAQ: Z). The company’s shares closed yesterday at $53.60.

Helfstein commented:

“After market close, Zillow positively pre-announced 1Q18 results and announced the expansion of Instant Offers beyond test mode in two large markets. Mid-point of 1Q revenues and EBITDA pre-announcement 2% and 3% above prior guidance, respectively. ’18E revenue guided 15% higher on Home sales, almost all on new business. ’18E EBITDA guided 11% lower on investment in Homes. Profits from Homes will come from flip ~90 days after purchase (lower offer prices and property improvements, partially offset by brokerage commissions), while Z will sell high- value, qualified, accepted and unaccepted leads through Premier Agent. Timing is somewhat suspect, as Z could have waited to announce on earnings call, suggesting imminent capital raise to fund Home purchases. Meanwhile, significant VC-funded competition exists, but lacks Z’s consumer scale.”

According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 17.5% and a 63.1% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and IAC/InterActiveCorp.

Currently, the analyst consensus on Zillow Group Inc is Moderate Buy and the average price target is $56.40, representing a 5.2% upside.

In a report issued on April 4, D.A. Davidson also initiated coverage with a Hold rating on the stock with a $60 price target.

Based on Zillow Group Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $282 million and GAAP net loss of $77.18 million. In comparison, last year the company earned revenue of $246 million and had a GAAP net loss of $4.61 million.

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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.