- Zillow Group (Z) stock increased as much as 5.2% in early trading on Monday after Evercore ISI analyst Mark Mahaney upgraded shares of the online house-buying platform to “outperform” from “in line” on anticipations that residential real estate will peak in Q1 in terms of current home sales and home prices.
- Mahaney predicts that the rise may continue and advised investors to purchase shares in anticipation of what may be a "rapid revival" in the housing market. The company increased its price objective from $34 to $61, representing a potential gain of approximately 44% from Friday's finish. Zillow's shares have increased 33% in 2023.
Why it matters
Mahaney noted Zillow's capacity to keep up strong earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. Additionally, the analyst pointed out that residential real estate is continuing to secularly migrate to online channels and concluded that Zillow has given itself optionality through both product development and acquisitions.
