PAA Research Sees Trulia as #3 in Residential Real Estate Listing Market, Expects Stock to Move 'Appreciably Lower'
In a report from PAA Research on Trulia (NYSE: TRLA) Friday, the firm suggested shares may move "appreciably lower."
Analyst Bradley Safalow said Trulia is "at best a questionable" number two in the market for residential real estate listings, and more likely the number three player.
Safalow believes Zillow (NASDAQ: Z) and Realtor.com are the primary sources for consumers looking for real estate information.
Safalow had other bearish comments in his report: he is concerned Trulia's traffic may decelerate "dramatically" over the next six to 12 months, eventually falling "well behind" the curve in marketing residential real estate.
The analyst called the company's recent purchase of Market Leader a "poor use" of holder capital.
With shares of Trulia up 0.2 percent to $29.87 Friday morning, PAA's $20 price target represents potential downside of about 33 percent.
Latest Ratings for TRLA
|Oct 2014||Deutsche Bank||Maintains||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.