Last month, Zillow Group, Inc. (NASDAQ:Z) reported fourth-quarter revenue of $654 million, versus estimates of $650.29 million and adjusted EPS of 39 cents, versus estimates of 40 cents.
Also, this month, the company announced a $1.25 billion buyback plan, which boosted the stock price.
Several analysts made changes to their price forecast on Zillow following the earnings announcement.
JPMorgan Analyst View
JPMorgan reiterated an Overweight rating on Zillow stock with a price forecast of $84.
Analyst Dae K Lee wrote that recent share movements reflect concerns about AI disruption, regulatory scrutiny, litigation, and shifts in listing models, consolidation, and commission rates.
Despite these pressures, Zillow’s operations remain strong, adds the analyst.
The analyst remains positive on Zillow due to its category leadership and strong engagement.
The analyst writes that it is the most visited U.S. real estate app and website, with ~80% direct traffic.
Durable software and data moats, including ShowingTime (~90% of tours) and Follow Up Boss adoption among top teams, support multi-year share gains, adds the analyst.
Eyes On AI Summit
The March 24 AI Summit in NYC will showcase how vertical integration, last-mile data, and closed-loop workflows create a competitive moat, says the analyst.
Lee writes that the management is expected to highlight platform-level AI, early ROI, monetization paths, and spatial-AI advantages over general-purpose LLMs.
The analyst says that operationally, Zillow continues to outperform the industry, with 2025 revenue up 16% year-over-year compared to 3% industry growth.
Lee expects revenue growth of 15% and adjusted EBITDA growth of 25% in 2026.
Z Price Action: Zillow Group shares were up 4.17% at $42.97 at the time of publication on Friday. The stock is near its 52-week low of $41.13, according to Benzinga Pro data.
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