Zillow Group (NASDAQ:Z) shares rose more than 2% intra-day today after JMP Securities analysts raised their rating to Market Outperform from Market Perform, with a price target of $60 per share.

The analysts believe that Zillow Group has a solid foundation for gaining market share as the industry returns to normal conditions. They pointed out that the current consensus estimates for Zillow's performance in 2025 and 2026 might be undervaluing the company's potential, especially considering the expected pent-up demand and the likelihood of interest rates starting to decline in the second half of 2024.

As a result of this analysis, JMP Securities increased its projections for Zillow's revenue and earnings, factoring in modest market share gains for Zillow and a normalization in existing home transactions.

Moreover, the firm anticipates additional growth beyond their already above-consensus forecasts, as Zillow Group expands its newer business solutions.