Analysts Offer Insights on Services Companies: AMC Entertainment (NYSE: AMC) and Zillow Group Inc (NASDAQ: ZG)


There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on AMC Entertainment (NYSE: AMC) and Zillow Group Inc (NASDAQ: ZG) with bullish sentiments.

AMC Entertainment (NYSE: AMC)

In a report released today, Michael Pachter from Wedbush upgraded AMC Entertainment (NYSE: AMC) to Buy, with a price target of $25. The company’s shares closed yesterday at $17.20.

According to TipRanks.com, Pachter is ranked 0 out of 5 stars with an average return of -2.2% and a 50.6% success rate. Pachter covers the Services sector, focusing on stocks such as Cinemark Holdings Inc, Pandora Media, and Best Buy Co.

Currently, the analyst consensus on AMC Entertainment is Moderate Buy and the average price target is $23, representing a 33.7% upside.

In a report issued on April 26, B.Riley FBR also reiterated a Buy rating on the stock with a $27.50 price target.

See today’s analyst top recommended stocks >>

Zillow Group Inc (NASDAQ: ZG)

Benchmark Co. analyst Daniel Kurnos maintained a Buy rating on Zillow Group Inc (NASDAQ: ZG) today and set a price target of $62. The company’s shares closed yesterday at $55.60.

Kurnos noted:

“We estimate PA ARPA was up 35% y/y in the quarter, 2% better than our expectations, while both Rental (+35%) and traffic (+6% on average) also came in ahead of forecasts. Mortgage was admittedly a damper on results, however, falling 6% y/y in the quarter, and with the full-year outlook now calling for down mid-single digits. We continue to view Mortgage as a nice ancillary product, but less relevant to overall growth story, which continues to feature PA growth north of 20%. Projections for the Home segment continue to vary wildly, with consensus seemingly not even factoring it in on a large scale basis in 2019. Our prior $217.5 million forecast for 2018 remains unchanged, and falls at the higher end of the revenue range. At this point, with so much uncertainty, we see no reason to adjust our estimates, with the assumption that Zillow will also continue to invest heavily in the product both this year and next, weighing on adjusted EBITDA.”

According to TipRanks.com, Kurnos is a 5-star analyst with an average return of 9.6% and a 52.3% success rate. Kurnos covers the Services sector, focusing on stocks such as Chicken Soup For The Soul Entertainment Inc, Sinclair Broadcast, and 1-800 Flowers.com.

Currently, the analyst consensus on Zillow Group Inc is Moderate Buy and the average price target is $54.10, representing a -2.7% downside.

In a report issued on April 23, Macquarie also upgraded the stock to Buy.

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