On Tuesday, Piper Sandler reaffirmed its positive stance on Zillow Group (NASDAQ:ZG) shares, maintaining an Overweight rating and a price target of $82.00. The stock, currently trading at $66.84, has shown remarkable strength with a 57% gain over the past year, according to InvestingPro data. The endorsement follows recent discussions with Zillow’s management, including Vice President of Finance and Investor Relations Brad Berning and Investor Relations Director Mary Ellen Fukuhara, after the company’s first-quarter earnings report.
The conversations with Zillow’s management team centered on various topics, including the drivers behind the company’s Residential guidance, its Rentals strategy, and broader macroeconomic and market dynamics, such as the Clear Cooperation policy. The management expressed a blend of confidence in the product changes being implemented and caution regarding the market conditions. InvestingPro data reveals management’s confidence is backed by strong fundamentals, with the company maintaining a healthy current ratio of 2.46 and more cash than debt on its balance sheet.
Zillow Group was highlighted as a top Mid-Cap selection by Piper Sandler, with the firm noting the company’s strengthened balance sheet and a clear path to GAAP Net Income profitability. The analyst’s commentary underscored the company’s strategic positioning and potential for growth despite the current cautious market outlook.
The affirmation of the Overweight rating and price target reflects Piper Sandler’s continued optimism about Zillow Group’s prospects. The analyst’s statement emphasized, "ZG remains a top Mid-Cap pick with an improving balance sheet and path to GAAP Net Income profitability. Reiterate OW, $82 PT."
Investors and market watchers will likely monitor Zillow Group’s progress as it navigates the evolving real estate landscape and works towards achieving its financial goals as outlined by the company’s management and supported by Piper Sandler’s analysis. With an overall Financial Health score of "FAIR" and analysts expecting profitability this year, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of Zillow’s prospects.
In other recent news, Zillow Group’s first-quarter earnings for 2025 exceeded expectations, with a notable 2% revenue beat and a 10% EBITDA beat compared to Wall Street’s projections. However, the company’s second-quarter forecast fell slightly below analyst expectations, with revenue and EBITDA forecasts missing by 1% and 10% at the midpoint, respectively. Despite this, Zillow reaffirmed its full-year 2025 guidance of low to mid-teens revenue growth. Analysts from Benchmark adjusted Zillow’s price target to $95, maintaining a Buy rating, while Cantor Fitzgerald kept a Neutral rating with a $60 target. Piper Sandler raised their price target to $82, retaining an Overweight rating, citing Zillow’s proactive product initiatives and cost control. KeyBanc maintained an Overweight rating and an $85 price target, expressing confidence in Zillow’s market share gains and disciplined cost management. JMP Securities reiterated a Market Outperform rating with a $92 price target, highlighting Zillow’s potential for valuation multiple expansion and its robust position in the property technology sector. These developments reflect a mixed but generally optimistic outlook from analysts regarding Zillow’s performance amidst economic challenges.
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