Zillow (Z) PT Lifted to $135 at RBC Capital on Closing of Trulia Deal

RBC Capital analyst Mark Mahaney boosted his price target on Sector Perform-rated Zillow (NASDAQ: Z) to $135.00 (from $115.00) after the company completed its acquisition of Trulia.

The keys to the deal, according to Mahaney: 1) Layoffs – Along with the acquisition, the company eliminated ~280 positions across its sales and admin organizations to remove redundancies, with another 70 eliminations to come by the end of Q2. This ~15% workforce trim will leave the company with ~2,000 employees total; 2) New TRLA President – Paul Levine has been named the new president of Trulia (he was formerly COO) while Pete Flint (TRLA CEO/Co-Founder) has joined Z’s board, as has TRLA board member Greg Waldorf; & 3) New Shared Service Offerings – Z expects to begin to market shared services/marketing platforms for advertisers and industry partners to improve ROI/efficiency. TRLA will also transfer to the fixed impression ad revenue model from its current share of voice model when it begins to be powered by Z’s platform later this year.

For an analyst ratings summary and ratings history on Zillow click here. For more ratings news on Zillow click here.

Shares of Zillow closed at $0.06 yesterday.

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