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Buy Zillow Before Investors Notice Move To iBuyer Model, Says Macquarie

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Buy Zillow Before Investors Notice Move To iBuyer Model, Says Macquarie
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Zillow Group (NASDAQ: ZG)’s pivot toward an iBuyer model is a "very positive strategic move" that could disrupt the home sales market, according to Macquarie.

The Analyst

Matthew Brooks of Macquarie upgraded Zillow from Neutral to Outperform and raised the stock’s target price from $48 to $75.

The Thesis

The impact of iBuyer on the real estate space could be similar to to how Amazon.com, Inc. (NASDAQ: AMZN), Uber and Netflix, Inc. (NASDAQ: NFLX) disrupted their respective sectors, Brooks said in a Sunday note. 

Zillow is well-positioned to make the transition given the brand recognition the company has built, the analyst said. 

“Customers are already familiar with Zillow’s brands and this is likely to reduce customer acquisition costs for the new homes segment.”

Zillow has real estate data and predictive models to support the business, according to Macquarie. 

Price Action

At the time of publication, shares of Zillow were trading up 1.7 percent at $47.50.

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Latest Ratings for ZG

DateFirmActionFromTo
Nov 2018Deutsche BankMaintainsHoldHold
Sep 2018WedbushInitiates Coverage OnNeutral
Sep 2018Canaccord GenuityMaintainsBuyBuy

View More Analyst Ratings for ZG
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Posted-In: Macquarie Matthew BrooksUpgrades Price Target Analyst Ratings Real Estate Best of Benzinga

 

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