Morgan Stanley Thinks Zillow Will Still Outperform As Company Survives 'Complicated Challenges'

Loading...
Loading...
In a report published Wednesday, Morgan Stanley analyst Dean J Prissman maintained an Overweight rating on
Zillow Group Inc
Z
, with a price target of $108, after the company reported robust 2Q15 results. Zillow Group reported strong results for the quarter, with healthy revenues and profits. Proforma revenue growth came in at 20 percent, beating consensus estimates by 2 percent. Adjusted EBITDA was recorded at $21m, about $16m higher than the high-end of the guidance and ahead of the consensus estimates. Zillow Group was able to beat the bottom line expectations with "marketing efficiencies and better than previously expected synergies," analyst Dean Prissman said. In the report Morgan Stanley noted, "While challenges with Premier Agent revenue growth at Trulia persisted in advance of a completed integration, overall Premier Agent revenue growth was driven by brand Zillow which grew 48% y/y. This highlights ongoing strength in the core business, an area of investor concern." The company moved the timeline for completing the integration of the Zillow and Trulia agent advertising business from the earlier stated end of 4Q15 to end of 3Q15. "Against a backdrop of significant investor uncertainty arising from challenges with Trulia, and former CFO Chad Cohen's resignation in early July, management re-affirmed full year revenue guidance of $690m, and increased the Adj. EBITDA by $5m, signaling confidence in the businesses fundamentals," Prissman wrote.
Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst RatingsMorgan Stanley
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...