KeyBanc said Zillow has more room to run ahead as the housing market improves. The firm upgraded the real estate marketplace to overweight from sector weight. Its price target of $100 implies upside of 26.3%. Analyst Sergio Segura highlighted Zillow’s app experience and innovation as a catalyst for stock growth. He added that an increase in existing home sales could serve as a macroeconomic tailwind for the firm. “We believe Zillow’s integrated app experience and increased penetration of enhanced markets can continue driving mid-teens growth in a historically challenging real estate market,” Segura said “Coupled with high incremental margins and a disciplined investment framework, we believe Zillow is poised for outsized margin expansion.” The analyst added that Zillow also works as a “one-stop shop for all things real estate” is already broadening out to rentals and mortgages. Segura raised his full-year revenue estimates for 2025 and 2026 by 1% and 3%, respectively. “Although expectations are for the housing market to improve in 2025E, we still see upside potential to consensus estimates even if this does not materialize,” the analyst said. Analyst sentiment on the stock is split. Of the 28 who cover Zillow, 15 have a buy or strong buy rating, according to LSEG. The remaining 13, however, rate it a hold or underperform.
