Zillow Sets Up Favorably Into Q4 Print Amid Compass Injunction Related Uncertainty, RBC Says

MT Newswires Live01-23

Zillow (ZG, Z) appears favorably positioned ahead of earnings print despite investor skepticism tied to the Compass (COMP) injunction outcome, with concerns about potential Multiple Listing Service fragmentation, RBC Capital Markets said in a Thursday note.

Zillow is scheduled to release its Q4 financial results on Feb. 10.

According to the report, Preferred Agents are becoming increasingly accretive, with agent payments to Zillow rising above prior market-based pricing levels.

RBC highlighted that Zillow Showcase is gaining traction, with per-listing pricing working well for hard-to-sell homes, supporting intermediate term goals.

The analysts noted that Zillow Home Loans is the main source with friction to current loan relationships, which will take time to work out.

The firm maintained its outperform rating on the stock with a price target of $95.

Shares of Zillow were up more than 3% in recent trading.

Price: 66.49, Change: +1.90, Percent Change: +2.94

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