Zillow (ZG) PT Raised to $42 at RBC Capital Amid Strong Q2
- Wall St. set to open lower, weighed down by GE
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
- Pre-Open Stock Movers 10/21: (ALKS) (RAI) (PFPT) (MSFT) Higher; (SGY) (TWLO) (RRGB) Lower (more...)
- Oil rises on Russia's output freeze commitment
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
RBC Capital analyst Mark Mahaney reiterated an Outperform rating and raised his price target on Zillow Group (NASDAQ: ZG) (NASDAQ: Z) to $42.00 (from $36.00) following strong Q2 esults, with the company outperforming Street top and bottom line expectations and raising the FY guidance.
What investors need to know, according to Mahaney: "1) Revenue Continues To Accelerate – On a pro-forma basis, with Total Revenue going to 31% Y/Y (from 25%), Marketplace reaching 44% Y/Y (from 23%) and Mortgages reaching 77% Y/Y (from 65%). 2) EBITDA Leverage Is Coming Through – EBITDA reached $29MM, marking a 14% margin, up 2pts Y/Y… and 13pts Q/Q. 3) Excess Legal Fees Are Now Behind Zillow – ZG had one-time legal fees in the quarter of $130MM from the settlement with Move. ZG had previously forecast legal expenses in the back-half of the year and now expects to reinvest some of those savings into the biz. 4) Metrics Remain Solid – May traffic set a new all-time traffic record of 171MM+ Unique Users, with ZG now holding 67% of the category market share according to comScore. ARPU reached $536 (up 43% Y/Y) while Agent Subs decreased slightly (0.7K) to reach 91,200."
2017 Revenue & EBITDA estimates increased 3% & 21% to $1.05B and $262MM.
Shares of Zillow Group closed at $39.35 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
- Philip Morris Intl (PM) PT Raised to $101 at Jefferies
- Imperial Capital Raises Price Target on American Airlines (AAL) Following 3Q EPS Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRBC Capital, Mark Mahaney
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!