Zillow (ZG) PT Raised to $42 at RBC Capital Amid Strong Q2
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium 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
- MKM Partners Raises Price Target on Broadcom Ltd. (AVGO) to $207 Following 4Q Beat
- MKM Partners Raises Price Target on Hartford Financial (HIG) to $55
- Pivotal Research Upgrades Flowers Foods (FLO) to Hold
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!