Zillow Growth Outlook Tied to Enhanced Market Expansion, RBC Says

MT Newswires Live
03-21

Zillow Group's (ZG) ability to meet 2025 growth estimates depends on the performance of its "enhanced market" strategy, and recent expansions would need to significantly underperform for the company to miss Street forecasts, RBC Capital Markets said in a report emailed Thursday.

RBC built a financial model to assess how enhanced markets contribute to Zillow's above-market growth. The analysis suggests that with an assumed 2.5% annual transaction value growth, non-enhanced markets would need to grow 6.8% to align with Street estimates for 2025.

Further rollouts in 2026 could allow non-enhanced markets to decline slightly while still meeting projections, according to the note.

The firm noted that early enhanced markets doubled their market share in two years, but new cohorts may see slower gains due to differences in rollout timing and prior product expansions. RBC also factored in Zillow's acquisitions and pricing actions, which contributed to 2024 growth but may not be recurring.

The firm said Zillow is positioned to grow despite fluctuating market conditions, supported by its enhanced market strategy and product improvements.

RBC has an outperform rating on Zillow, with a price target of $88.

Shares of Zillow Group were up 1.4% in recent Thursday trading.

Price: 69.85, Change: +1.00, Percent Change: +1.45

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10