Analyst Sees Massive Upside for Zillow Stock

JMP upgraded ZG to “outperform”

JMP upgraded Zillow Group Inc (NASDAQ:ZG) to “outperform” from “market perform,” helping the stock to a 3.2% premarket lead. The Wall Street analyst said it sees a 37% upside for the real estate tech platform stock, citing increasing real estate demand and volume.

Coming into today, the majority of analysts are bullish, but there’s still room for more optimism amongst covering brokerages. Of the 22 in coverage, 10 analysts still rate ZG a “hold” or worse. 

Options are reasonably priced at the moment. This is per the security’s Schaeffer’s Volatility Index (SVI) reading of 39%, which sits in the relatively low 10th percentile of its annual range, suggesting traders are pricing in lower-than-usual volatility expectations.

On the charts, the Zillow Group stock is continuing to break out from its early November annual lows near the $33 level. Recently guided higher by its 10-day moving average, ZG added 23.4% over the last month. Year to date, the security is up 40.4%.

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