Canaccord Genuity analysts raised the price target for Zillow Group (NASDAQ:ZG) to $86 from $64, maintaining a Hold rating. The decision followed a surge of approximately 40% in Zillow’s stock during November, driven by strong quarterly performance and strategic advancements.
Zillow reported robust third-quarter results, surpassing expectations for both revenue and profitability. The company demonstrated a significant competitive edge, outperforming the residential real estate sector with disciplined cost management that delivered approximately 1500 basis points of outperformance. Fourth-quarter guidance aligned with expectations, showcasing growth in key areas such as Rentals and Mortgages, while also accounting for seasonal declines in advertising spend.
Strategic initiatives further strengthened Zillow’s market position. The acquisition of Virtual Staging AI (VSAI) brought advanced AI-driven technology into Zillow’s offerings, enhancing the user experience. Zillow also expanded its partnership with Realtor.com, increasing access to its interactive listing media, and introduced BuyAbility, a feature that provides real-time, personalized home affordability analysis.