Zillow stock gains after Jefferies says company has 'attractive setup into 2023'
Shares of Zillow Group Inc. were headed nearly 6% higher in Thursday afternoon trading. Jefferies analyst John Colantuoni reiterated his bullish view of the online real-estate company earlier Thursday, writing that he saw "upside potential" for the third quarter based on housing data. He remains upbeat about Zillow's long-term story given the company's investments in areas like touring, financing, and seller services, as well as a partnership with Opendoor. "We also believe Z's dominant share of [real-estate] traffic provides various pathways to above-market growth," Colantuoni wrote. "While macro concerns could keep the stock rangebound [near term], we see an attractive setup into 2023 stemming from near-trough valuation, a 7% FCF [free-cash-flow] yield, and potential improvement in housing data." Zillow shares have declined 42% so far this year as the S&P 500 has lost 17%.
-Emily Bary
(END) Dow Jones Newswires
September 08, 2022 12:58 ET (16:58 GMT)
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