UPDATE: Canaccord Genuity Reiterates Buy Rating, Raises PT on Zillow
In a report published Monday, Canaccord Genuity reiterated its Buy rating on Zillow (NASDAQ: Z), and raised its price target from $45.00 to $50.00.
Canaccord Genuity noted, “We have updated our estimates to reflect the company's $172M offering. We believe the offering provides Zillow with more flexibility to execute on its multi-year strategy of penetrating several markets with multi-billion-dollar potential...Following Zillow's ~10% dilutive equity offering, we are updating our estimates and price target. We believe the negative impact of the dilution is more than offset by 1) greater capital flexibility, 2) lack of large-scale selling by founders indicating confidence, and 3) significantly increased liquidity that, coupled with the market cap firmly above $1B, should bring more shareholders into the mix.”
Zillow closed on Friday at $42.63.
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