Speaking at the Sohn Conference in London, Messara said he expects the U.S. online real estate company to reach an enterprise value of $50 billion, calling it the firm's biggest bet ever, according to Reuters. The enterprise value implies a price of $770 a share for the company.
The hedge fund portfolio manager said that Zillow would follow a valuation path similar to market leaders in other markets. The company will be helped by its strong and defensible position, its focus on mobile technology, and its "best in class" management, according to Messaro.
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TheStreet Ratings team rates ZILLOW INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZILLOW INC (Z) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."