Morgan Stanley analyst Brian Nowak maintained an Overweight rating on Zillow Group, Inc.- Class C (NASDAQ:Z) after new data indicated rising consumer use of online real estate tools. Nowak raises his price target from $34 to $40.
Nowak explains, “We see growing adoption translating into continued strong lead and commission growth, with more ad dollars moving toward [Zillow].” The analyst explains that consumers are moving to online sources for real estate and Zillow is a top player in the field. He elaborates that Zillow’s adoption is set to be a “long, structural tailwind for Z’s real estate revenue growth as real estate agents competing for convertible leads will need to spend more on advertising with Zillow.”
According to TipRanks, Nowak has a 60% success rate recommending stocks with a +7.3% average return per rating.