Zillow (NASDAQ:ZG) rose 3.5% in premarket trade, as Wedbush upgraded the firm to Outperform from Neutral, as it sees the firm’s software and services ((S&S)) initiatives adding to potential upside risk to its estimates.
The S&S revenues are reported under the Residential revenue line item, Wedbush believes the S&S offerings, along with Zillow’s core brokerage revenues, have allowed total revenues to grow faster than the national existing home market for several quarters now.
“Free falling mortgage rates should be a catalyst for our entire coverage,” the analysts said in a note.
Wedbush, lifted its FY25 revenue estimates, and now expects it to come in at $2.5 billion, as compared to its previous expectation of $2.4 billion, and upped its AEBITDA estimate to $679 million from $600 million.
The analysts also raised the price target to PT to $80 from $50.
Shares in the company were up 2% since the start of the year.
SA quant and SA analysts both rate the company at Hold.
