SunTrust Reiterates Buy Following Zillow (Z) 1Q Results
SunTrust Robinson Humphrey reiterate a Buy rating on Zillow (NASDAQ: Z), with a price target of $130.00, believing 2015 expectations are sufficiently low.
SunTrust analyst, Robert Peck, commented on Zillow saying, "We believe expectations are sufficiently low for 2015 (allowing for post-merger changes). Further, we think the long-term opportunity driven by the secular shift of information and discovery online (mobile) and Z's dominant market position are currently being underappreciated by the Street. We think Z can achieve ~$350M in EBITDA in FY2017 and has several long-term drivers in place. We maintain our Buy rating and $130 price target based on a 25x multiple our 2017E EBITDA and our Central Tendency of Value Methodology."
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Shares of Zillow closed at $97.98 yesterday.