Citigroup also lifted its rating on the stock to buy from neutral.
Zillow reported revenue of $789 million in the fourth quarter, down 16% from $944 million a year earlier, but far above the FactSet analyst consensus of $740.5 million.
Adjusted earnings per share were 44 cents, blowing away the analyst consensus of 28 cents.
Zillow is benefiting from strong demand for residential real estate during the coronavirus pandemic and strong demand for its products. The stock zoomed to a record high Thursday and recently traded at $196.78, up 14.6%.
Citi analysts raised their price estimate to $250 from $130.
“In light of ZG’s strong cost control and ability to reduce inventory amid COVID-19 pressures, followed by a rapid increase in home buying, we have more confidence in ZG’s ability to execute,” they wrote in a commentary cited by Bloomberg.
Benchmark boosted its price target to $230 from $140, keeping its buy rating. In light of Zillow’s lower costs and buoyant demand, “the Zillow fly wheel will only accelerate further,” Benchmark analysts said.
Jefferies increased its target to $215 from $175, keeping its buy rating. Earnings show Zillow “as a key beneficiary of the strong U.S. housing market,” which should remain strong.
Piper Sandler raised its target to $209 from $159, keeping its overweight rating. Susquehanna Financial Group lifted its target on Zillow to $200 from $130, keeping its neutral rating.