Wedbush Upgrades Zillow to Outperform, Stock Surges 4%

Zillow Group (NASDAQ:ZG) shares rose more than 4% intra-day on Monday after Wedbush analysts upgraded the company to Outperform from Neutral and raised their price target to $80 from $50.

The upgrade is driven by a favorable outlook for Zillow’s core brokerage business, which could benefit from potentially lower mortgage rates. Additionally, the analysts highlighted Zillow’s growing software and services (S&S) initiatives as a key contributor to potential upside. S&S revenues, included in Zillow’s Residential segment, have supported the company’s overall revenue growth, which has outpaced the broader national existing home market for several quarters. The analysts believe these factors position Zillow for continued success and justify the increased price target.