RBC Capital Reiterates Outperform on Zillow Group, Inc. (ZG) Following Earnings Report
RBC Capital reiterated an Outperform rating and $42.00 price target on Zillow Group (NASDAQ: ZG) following the company's 3Q earnings report. Revenue of $225MM beat the Street's estimates by 2% with an upside in both Marketplace and Display Revenue. ZG maintained its Q4 EBITDA guide but tweaked down its Q4 Rev Guidance to $218-223MM (from $219-224MM) citing uncertainty around new selfserve ad product’s impact on its agent business.
Analyst Mark Mahaney commented, "ZG posted stronger than expected Q3 results while largely maintaining the Q4 outlook (likely some conservatism here). Organic Revenue Growth accelerated and Adjusted EBITDA margin reached 3-year high. Our estimates are modestly adjusted down, while our PT remains $42. Maintain Outperform."
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Shares of Zillow Group closed at $32.78 yesterday.