Buy Zillow Before Investors Notice Move To iBuyer Model, Says Macquarie
Zillow Group (NASDAQ: ZG)’s pivot toward an iBuyer model is a "very positive strategic move" that could disrupt the home sales market, according to Macquarie.
The Analyst
Matthew Brooks of Macquarie upgraded Zillow from Neutral to Outperform and raised the stock’s target price from $48 to $75.
The Thesis
The impact of iBuyer on the real estate space could be similar to to how Amazon.com, Inc. (NASDAQ: AMZN), Uber and Netflix, Inc. (NASDAQ: NFLX) disrupted their respective sectors, Brooks said in a Sunday note.
Zillow is well-positioned to make the transition given the brand recognition the company has built, the analyst said.
“Customers are already familiar with Zillow’s brands and this is likely to reduce customer acquisition costs for the new homes segment.”
Zillow has real estate data and predictive models to support the business, according to Macquarie.
Price Action
At the time of publication, shares of Zillow were trading up 1.7 percent at $47.50.
Related Links:
Morgan Stanley's New Valuation Of Zillow Prompts Downgrade
How The Pace Of Home Value Growth Compares With The Pace Of US Wage Growth
Latest Ratings for ZG
Apr 2018 | Macquarie | Upgrades | Neutral | Outperform |
Apr 2018 | Morgan Stanley | Downgrades | Overweight | Equal-Weight |
Apr 2018 | Barclays | Maintains | Equal-Weight | Equal-Weight |
View More Analyst Ratings for ZG
View the Latest Analyst Ratings
See more from Benzinga
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
