NEW YORK (TheStreet) -- Zillow Group (Z) shares are up 6.56% to $98.33 in trading on Monday after the online real estate brokerage company had its rating raised to "buy" from "neutral" by analysts at SunTrust.
The firm also raised the Seattle-based company's price target to $130 from $110, a 32.8% premium over the stock's opening price today, with analysts anticipating strong long term growth for the company following its $2.5 billion acquisition of rival Trulia (TRLA).
"We believe that as the better performing agents get more leads, conversion rate and ROIs will rise, creating significant pricing power for Z..." said analysts.
The company is scheduled to release its first quarter earnings results after the closing bell tomorrow with analysts forecasting an EPS loss of 11 cents per share on revenue of $137.50 million.
TheStreet Ratings team rates ZILLOW GROUP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZILLOW GROUP 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 weak operating cash flow."