KeyBanc has expressed optimism about Zillow’s future potential, suggesting that the company stands to benefit as the housing market gets back on its feet. The firm recently upgraded Zillow from a neutral ‘sector weight’ to a more favorable ‘overweight’ status, setting a price target of $100 which suggests a potential 26.3% increase in value.
Sergio Segura, an analyst at KeyBanc, pointed to Zillow’s app as a key driver of growth, emphasizing its innovative features. He noted that the anticipated rise in existing home sales could act as a macroeconomic boost for Zillow. Segura mentioned, “We believe Zillow’s well-integrated app and deeper reach in advanced markets can sustain growth in the mid-teens, despite real estate’s historically challenging landscape.” He also observed that Zillow’s high incremental margins and prudent investment strategy position it well for significant margin growth.
Moreover, Segura highlighted Zillow’s role as a comprehensive platform for real estate, expanding its services into areas like rentals and mortgages. He adjusted his revenue forecasts for 2025 and 2026 upwards by 1% and 3%, respectively. Segura commented, “Even if the 2025 housing market doesn’t improve as expected, there is still room for surpassing current consensus estimates.”
Analyst opinions on Zillow are mixed. Out of the 28 analysts following the stock, 15 recommend buying or strongly buying, according to LSEG data. Meanwhile, the remaining 13 are more conservative, rating it as a hold or underperform.
