RBC Capital Sets Expectations On Zillow Group Inc Ahead Of 2Q:15 Results

RBC Capital analyst Mark Mahaney came out with his prediction on Zillow Group Inc (NASDAQ:Z), as the company is scheduled to report its second-quarter results on Tuesday, August 4 after market close. Additionally, the analyst reiterated a Perform rating on the stock, with a price target of $103, which represents a potential upside of nearly 26% from today’s closing price.

Mahaney noted, “We are forecasting Q2:15 revenue of $169MM, in line with consensus. Our projection for EBITDA of $4.3MM is also right in line with consensus, while our NonGAAP EPS estimate of ($0.33) is below the Street estimate of ($0.26).” The analyst continued, “2015 is shaping up to be a transition year for Zillow, as the company deals with the effects caused by the FTC delay to the Trulia acquisition and integration challenges. Nevertheless, long term, we believe that Zillow could potentially again become an attractive investment vehicle.”

Bottom line, “Based on intra-quarter data points and our model sensitivity work, we believe that Street estimates are reasonable for the June quarter. We view full-year estimates also as reasonable, though we believe downside variance is slightly more likely than upside variance.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a total average return of 23.7% and a 67.0% success rate. Mahaney has a 30.0% average return when recommending Z, and is ranked #6 out of 3721 analysts.

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