ThinkEquity Says Buy the Dip in Zillow (Z) Shares; Shrugs at Rumor of Competitor's Possible IPO

Traders in Zillow (NYSE: Z) seem to be heeding a call by ThinkEquity's Ronald Josey Thursday morning. The stock just opened up more than 1.5 percent despite a modest move lower in the US's major indices.

Josey believes recent weakness in Zillow shares should be used as a buying opportunity. He believes investors have been selling the stock following news a competitor could be exploring a public offering. The stock is down more than 13 percent over the last three weeks.

The "buy-on-the-dip" recommendation also comes ahead of Zillow's first-quarter report next week on Wednesday. Josey said he is modeling for the company to beat the Street's current estimates of 3 cents per share on earnings and $21.5 million on sales.

ThinkEquity maintains a Buy rating and $40 price target on shares of Zillow. With the stock last trading at $33.89, Josey's price target implies possible price appreciation of about 18 percent.

To track all the market-moving calls on Zillow shares, visit our Analyst Ratings page.

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