UPDATE: Canaccord Ups Zillow Target; Cites Consolidation Potential

Canaccord Genuity Inc. boosted its price target on home real estate concern Zillow Inc.

to $130 from $115 a share, citing its earnings potential and possible consolidation with competitor Trulia Inc.

. Zillow traded recently at $126.70, up 3.03 percent and shares have more than doubled in the past 12 months. Canaccord analyst Michael Graham said "despite its lofty valuation" he believes its core business is strong and sees a "strong technical picture." Graham noted that 34 percent of the shares are held as short interest while "seemingly highly convicted" top shareholders own an additional 42 percent. "We note that six investors own 52 percent of Zillow and also hold 42 percent of Trulia, potentially reflecting their desire to see consolidation," Graham said in a research note. Zillo boosted its marketing by 62.5% to $65 million for this year, and its number of unique visitors in the first quarter rose 52% from a year earlier. Graham along with a strong core business, Zillow's ancillary mortgage and rental segments are "evolving nicely."