Zillow Group (NASDAQ:ZG) is one of the best communication services stocks according to Hedge Funds.
RBC Capital analyst Brad Erickson reiterated his bullish call on Zillow Group (NASDAQ:ZG). The analyst assigned a Buy rating on December 15, with a $95.00 price target. As per Erickson’s forecasts, investors should expect an upside of almost 41%.
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Erickson’s outperform rating came after recent reports about Google showing search results for third-party real estate listings from ComeHome. This indicates Google is entering into the real estate advertising space, which poses a risk to Zillow Group (NASDAQ:ZG). However, Erickson sees such listings as a violation of several Multiple Listing Service (MLS) distribution rules, and predicts that it will shut down in the near future. Hence, he anticipates a very limited fundamental impact on Zillow Group (NASDAQ:ZG).
On December 15, Mike Ng from Goldman Sachs also highlighted the same issue and rated the stock as Hold. Ng also expects the near-term effect on Zillow Group (NASDAQ:ZG) to be limited, as this product is only available on mobile browsers across a very few markets. His price target of $78 for the stock still offers almost 16% upside.
Zillow Group (NASDAQ:ZG) is a technology-enabled platform for the real estate market, operating through websites and mobile applications. It offers marketplaces for rentals, construction, agents, and advertising of properties. Moreover, it also offers SaaS solutions for real estate transaction management. The company ensures a seamless experience for users who benefit from end-to-end real estate transaction solutions.
While we acknowledge the potential of ZG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
