What The Zillow & Trulia Merger Means For Move
Although Move shares are up almost six percent on the deal, many investors are concerned that so called “Zulia” will squeeze Move out of the market. Analyst Daniel Kurnos of Benchmark laid out the positives and negatives for Move.
As was apparent by the knee jerk reaction in Move’s trading, the deal puts a higher valuation on Move; move trades at just 2.4 times sales while Trulia was acquired for more than 17 times sales.
Kurnos also says that further industry consolidation is likely to compete with “Zulia.”
“On the other hand, Move would lose two potential suitors and face an increasing uphill battle with consumers for mind share,” according to Benchmark.
Shares of Move were last trading 5.2 percent higher, trailing Trulia, which was up 11.8 percent. Zillow shares are down 4.4 percent part way through the session on dilution concerns.
Latest Ratings for Z
|Jul 2016||Morgan Stanley||Maintains||Overweight|
|May 2016||Cowen & Co.||Upgrades||Underperform||Market Perform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.