SunTrust's Bob Peck Comments On The Zillow/Trulia Acquisition

Following the announcement on Monday that Zillow Z will acquire Trulia TRLA in a stock deal worth $3.5 billion, SunTrust's Bob Peck released a report Tuesday detailing his view on the deal.

Peck stated that he is "very bullish" on the long-term outlook for what the two companies can accomplish in the industry, given the large total-addressable-market.

Despite his optimism, Peck believes the Street has already priced in the potential upside and is maintaining a Neutral standpoint due to short-term valuation and risk around the closing of the deal.

Related Link: Zillow & Trulia Announce $3.5 Billion Deal; Peer Stocks In Play

Furthermore, Peck noted that from both a standalone and a consolidated point of view, the companies trade at a EV/EBITDA and a EV/Revenue premium relative to peers based on his 2016 adjusted estimates.

Amid the SunTrust note, shares of Zillow and Trulia are both down about two percent.