JMP Securities Reiterates Zillow Rating and Price Target

Zillow, Inc. Z had its Outperform rating and $155 Price Target reiterated by JMP Securities on Wednesday.

Analysts led by Ronald V. Josey issued their report following the announced $950 million acquisition of Move, Inc. MOVE by News Corp NWS and REA Group Ltd REA.

As a result of the Move, Inc. acquisition, shares of Zillow fell approximately 6 percent.  Josey claims that while the Move, Inc. deal will mean increased competition for Zillow, the “sell-off in Zillow shares [was] overdone and we are buyers on weakness.”

Zillow’s pending acquisition of Trulia will also mean 110 million visitors with 3x the size of monthly traffic compared to Move, Inc. according to Josey.

JMP’s Price Target of $155 is justified by “the large opportunity within online real estate, the potential for sustainable growth across Zillow’s businesses, and strong management.”

Zillow, Inc. traded at $112.64 midday on Wednesday.