Online real estate database company Zillow Group got a rating upgrade by a Cowen analyst.
Analyst Thomas Champion raised his rating to outperform from market perform on Zillow stock, citing his optimism on the new executive team’s involvement in implementing a shift in the company’s business strategy. Zillow CEO Rich Barton had stepped down in 2010, but resumed his chief executive position in February. In November, the company announced that Allen Parker, who’d been at Amazon for 12 years, would be joining Zillow as Chief Financial Officer.
Champion also pointed out that Zillow’s premier agents seem to have improved following some missteps in 2018.
In February, Zillow reported solid fourth-quarter results that beat analysts’ estimates. Net income came in at to $1.1 million (or 1 cent a share) while the consensus expected a break-even bottom line. Revenue surged +29% year-over-year to $365.3 million, surpassing the Street's estimate of $349.5 million.
Champion also increased his target price on the stock to $46, from $40.