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JPMorgan analysts initiated research coverage of Zillow Group (NASDAQ:ZG) with an Overweight rating. The analysts’ price target of $48 per share signals a nearly 20% upside relative to Friday’s closing price of $40.50.
“We believe Zillow’s leadership as the most visited online real estate platform, core demand generation-based business model, solid margins (26% in ‘22), and active share repurchase program best position Zillow to navigate the N-T real estate industry challenges and emerge stronger on the other end,” they said in an initiation note.
The analysts believe the company’s total addressable market (TAM) is more than $200 billion. In addition to Zillow, they also initiated research coverage of Redfin (NASDAQ:RDFN) with a Neutral rating and a price target of $8 per share.
“We prefer Zillow’s large scale, business model, and strong margins in the current volatile environment, but we believe both Zillow and Redfin with solid execution could drive L-T upside from these levels,” the analysts added.
Zillow shares are up 3% in pre-market Monday.
