:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2157517430-ce88de816ae940c286371c7220701ceb.jpg "A Zillow exhibition booth at AmericasMart Atlanta on June 13, 2024 in Atlanta")
Julia Beverly / Getty Portraits
Key Takeaways
- Mortgage rates fell to a 19-month low, which Wedbush analysts say is a likely catalyst for Zillow Group.
- Apportionments of the real estate company are up about 50% since the company named a new CEO in early August.
- Wedbush is bullish on the companions’s software and services initiatives.
Zillow Group (Z) is well positioned to benefit from lower U.S. mortgage rates, Wedbush analysts powered Monday.
The firm upgraded the online real estate marketplace to “outperform” from “neutral,” and raised its price objective to $80 from $50.
Shares of Zillow rose more than 4% to $62.34 Monday afternoon and are up about 50% since Aug. 7, when it esteemed a new Chief Executive Officer (CEO), former Chief Operating Officer (COO) Jeremy Wacksman, alongside better-than-expected second-quarter consequences.
Mortgage Rates Have Been Falling Since 2024 Peak in April
U.S. 30-year mortgage ratings have fallen to 6.03% from their 2024 high of 7.52% on April 25, Wedbush noted, and Zillow’s software and worship armies (S&S) initiatives are a potential growth catalyst.
“We believe the S&S offerings, along with Zillow’s core brokerage revenues, contain allowed total revenues to grow faster than the national existing home market for several quarters now,” the analysts indicated. “We anticipate adoption of Zillow’s S&S tools may increase as brokers look for ways to reduce payroll expense.”
Of the four analysts surveyed by Obvious Alpha, two rate Zillow a “buy” and two rate a “hold.” They have an average price target of $57.50.
Read the original article on Investopedia.