Is Zillow Inc About to be Zapped?

Is Zillow Inc About to be Zapped?

About Zillow

Zillow (Z) is a Seattle, Washington based American online real-estate marketplace that allows homeowners, home buyers, renters, real estate agents, property managers and landlords, and mortgage professionals to search for information regarding all things real-estate.

Zillow in the News

With summer just around the corner, many people are looking to rent out their homes, as well as find homes to rent and Zillow Inc (NASDAQ:Z) is ready to assist.

However, Shares of Zillow Inc (NASDAQ:Z) fell almost 4% yesterday, June 2 after RBC Capital analyst Mark Mahaney and Pacific Crest analyst Chad Bartley downgraded their ratings for the company from outperform to sector perform.

David Einhorn At The 2021 Sohn Investment Conference: Buy These Copper Plays

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasThere's a gold rush coming as electric vehicle manufacturers fight for market share, proclaimed David Einhorn at this year's 2021 Sohn Investment Conference. Check out our coverage of the 2021 Sohn Investment Conference here. Q1 2021 hedge fund letters, conferences and more SORRY! This content is exclusively for paying members. SIGN UP HERE If you Read More

What Does This Mean for Zillow’s Stock?

RBC Capital analyst Mark Mahaney downgraded Zillow from outperform to sector perform with a $115 price target. Mahaney explained, “Given the steady improvement we have tracked with Z’s fundamentals, we believe this outperformance has been justified. However, with the stock now trading at 48X ’15 EV/EBITDA and 12X ’15 EV/Sales — among the highest multiples in the sector — we see valuation upside as limited from here.” Mahaney has a +11.0% average return and a 62% success rate according to TipRanks. He also has a +15.8% average return on Zillow.

Pacific Crest analyst Chad Bartley also downgraded the stock from outperform to sector perform. He reasoned, “We do not see a negative catalyst for Zillow Inc (NASDAQ:Z) shares and would encourage investors to maintain exposure, but we think it makes sense to take some profits given the strong outperformance, already high multiple and limited upside.” Bartley has a +10.0% average return and a 65% success rate. He also has a +26.2% average return recommending Zillow.


Zillow Inc (NASDAQ:Z) has historically been a strong stock, but not all financial experts think that now is the time to add more shares to their portfolio.

By Carly Forster 

No posts to display