Zillow (Z) PT Raised at Goldman Sachs, Stock Remains Neutral-Rated

Goldman Sachs maintained a Neutral rating on Zillow (NASDAQ: Z) and raised its price target to $105.00 (from $76.00). The change follows Q1 results.

Analyst Heath P. Terry said, "Zillow reported 1Q revenue of $66.2mn (+70% yoy vs. +70% in 4Q), compared to our estimate of $65mn and consensus of $63mn. Adjusted EBITDA was $8.7mn (13.2% margins), compared to our estimate of $10mn and consensus of $5mn. Management guided to 2Q revenue of $75.5- 76.5mn vs. consensus of $72mn, and adjusted EBITDA of $6.0-6.5mn vs. consensus of $7mn. Management also revised FY 2014 revenue guidance to $304-308mn (from $228-294mn) and adjusted EBITDA to $48-50mn (from $38-40mn)."

"We continue to believe Zillow is well positioned to benefit from an improving housing environment, shift in real estate activity online, and growth in mobile, although at 45X 2015 EBITDA we believe, at least in the near term, that considerable success is currently reflected in the stock," he added.

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 $93.63 yesterday.

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