The shares of Zillow Group increased by 6.56 percent recently. The online real estate database company now has share value of $98.33. The SunTrust’s analyst also upgraded Seattle-based company’s rating to buy from the neutral status. The credit rating agency also increased the price target for the online venture’s share to $130 from $110. The premium has been around 32.8 percent on the opening time of the trading. Analysts expect huge growth potential in the company as it acquired its competition Trulia through $2.5 billion deal.
One analyst informed that he believes more competitive agents will yield more leads, conversion rates and return of investment will increase. This will increase pricing power for the Zillow Group. The company will make its first quarter earnings public soon. The analysts have projected earning per share will be down by 11 percent with the expected revenue of $137.50 million. The Street rating, an online rating portal has awarded C- ratings score to the Zillow Group Inc. the rating means a hold signal to the investors as shares have huge profit potential.
The portal came to the conclusion after evaluating strengths, weaknesses and the position of stock with respect to other competitions. Robust growth in the revenue, solid financial backup and acceptable debt levels are going to drive the future of this company. Profit margins are increasing too. Deteriorating net income and low return in terms of equity and weaker cash flow will create problems for the company and its investors during current fiscal.