JMP Securities reiterates Market Outperform on Zillow Group with raised PT to $87.

JMP Securities reiterates Market Outperform on Zillow Group with raised PT to $87.

JMP Securities has raised its price target on Zillow Group (NASDAQ:Z) to $87.00 from $80.00 while maintaining a Market Outperform rating on the stock. This update reflects the firm's positive outlook on Zillow's financial performance and growth prospects.

The new price target aligns with the broader analyst consensus, as tracked by InvestingPro, which shows targets ranging from $75 to $90. This suggests further upside potential from the current trading price of $78.50. JMP Securities believes that Zillow's strong market position, robust revenue streams, and strategic initiatives are key drivers behind this upward revision.

JMP Securities' updated model incorporates Zillow's first-half 2025 financial results and the company's recent strategic moves, such as its expansion into new markets and enhanced digital services. Additionally, the firm expects Zillow's peak penetration rate to increase from 15% to 17%, which raises U.S. peak sales estimates in the housing market from $1.5 trillion to $1.7 trillion.

Following the recent equity financing, JMP Securities estimates Zillow has a pro forma cash position of approximately $1.2 billion, which it believes will support operations into the fourth quarter of 2027. This robust financial position allows Zillow to continue investing in growth initiatives and maintain its competitive edge in the housing market.

The price target increase also reflects JMP's optimism about Zillow's ability to capitalize on the growing demand for digital services in the real estate industry. The firm expects Zillow's revenue to grow significantly in the coming years, driven by its strong brand, extensive market reach, and innovative technology solutions.

In other recent news, Zillow has announced the launch of a new platform aimed at helping homeowners understand their property's value and potential resale value. This move comes alongside Piper Sandler's decision to raise Zillow's stock price target to $85, citing promising growth prospects in the digital real estate market. The firm has adjusted its financial models to reflect a significant revenue potential in early-line real estate services, projecting $2.5 billion in US revenue by 2030. Additionally, Guggenheim has maintained a Buy rating on Zillow, supported by strong market share and promising data from recent customer surveys.

These recent developments highlight the ongoing activities and analyst perspectives surrounding Zillow Group. The firm's strong market position, robust financial performance, and strategic initiatives position it well for continued growth in the digital real estate market.