One Reason Why Zillow (ZG) Stock Is Gaining Today

Zillow (ZG) stock is higher on Thursday morning as Canaccord Genuity reiterated its ‘buy’ rating on shares and raised its price target to $40.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Zillow (ZG) - Get Report are rising 1.3% to $37.29 on Thursday morning as Canaccord Genuity increased its price target on the stock to $40 from $36 and reiterated its "buy" rating.

The firm said the Seattle-based online real estate platform is executing well as it integrates its purchase of Trulia and its strong revenue growth shows its creating value for customers, Barron's reports.

Although its early in terms of the competitive landscape, Canaccord said that margin expansion may be in the "foreseeable future."

Additionally, the company's traffic is now growing "solidly" faster than Realtor.com's and the firm is encouraged that management is more confident in its brand recognition.

Canaccord views 2017 as the year Zillow starts to show progress toward management's target EBITDA margin level of 40% vs. 14% in 2015, according to Barron's.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance.

But the team also finds that the company's return on equity has been disappointing.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: ZG

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