Increased Competition Hurting Zillow, Says Deutsche Bank

Deutsche Bank issued an industry update on Thursday highlighting

after the

Analyst day. Deutsche Bank rates Zillow as a Hold with a $115 price target Analysts Lloyd Walmsley, Ross Sandler, Deepak Mathivanan, Kevin LaBuz and Shawn Ghazikalaye wrote, "The Realogy Analyst day highlighted a steady and mutually beneficial relationship with Zillow, an emphasis on increasing its share of Internet leads from Realogy's own websites (which are proliferating)... and an upbeat outlook on US real estate…we expect intermediate term noise around the Trulia integration and increasing competition to provide better entry points." Zillow's recent Realogy listings deal did not contain any meaningful changes, however, the overall de-emphasis on Web leads can have a negative impact on Zillow in the mid- to long-term. There is a trend of an overall decrease in first time home buyers, however, reduced mortgage insurance fees and less restrictive down payment requirements should help add demand. Shares of Zillow recently traded at $109.72, up 0.66 percent.