{
  "id": 18510488,
  "title": "Keefe Bruyette lowers Zillow stock price target on weaker housing",
  "url": "https://urgent.news/2026/11/06/keefe-bruyette-lowers-zillow-stock-price-target-on-weaker-housing",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-06T14:08:47.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/keefe-bruyette-lowers-zillow-stock-price-target-on-weaker-housing-93CH-5008419"
  },
  "original_language": "en",
  "account": "Keefe, Bruyette & Woods has reduced its price target for Zillow Group Inc. to $33 from $34, while keeping a Market Perform rating on the stock. The reduced target is due to a weaker housing macro environment, which has led the firm to lower its adjusted EBITDA estimates for Zillow by 10% in 2026 and 20% in 2027 and 2028. Zillow generated $218 million in EBITDA over the past year, and despite this, the stock is still considered undervalued relative to its Fair Value by InvestingPro analysis. The firm's forecast for 2027 does not account for any significant improvement in the housing market, based on Zillow's fourth-quarter guidance, which leaves potential for upside if conditions improve.\n\nWhile Keefe, Bruyette & Woods acknowledges that a transition to preferred shares could bolster Zillow's integrated offering, the company remains skeptical about the magnitude and timing of the financial benefits, and believes more evidence is required. Execution risk and a volatile housing market add to the near-term visibility constraints, maintaining the firm's Market Perform rating. Two analysts have recently revised their earnings estimates downwards for the upcoming period, based on InvestingPro data. For a more detailed understanding of Zillow's prospects, investors can explore Zillow’s comprehensive Pro Research Report, which is one of over 1,400 available reports that convert complex data into actionable insights. Recently, Zillow reported its third-quarter 2026 earnings, which fell short of Wall Street expectations. The company posted adjusted earnings of $0.55 per share on revenue of $724 million, even though it reported a 7% year-over-year revenue growth. The results were impacted by a notable downturn in housing conditions during the quarter, triggered by a nearly 100 basis point increase in mortgage rates that weighed on the broader market. Zillow's efforts to expand its rental, mortgage, and AI-powered offerings have continued despite these challenging conditions, but the company's earnings report led to a noticeable drop in its stock price during after-hours trading. This report was AI-generated and reviewed by an editor.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}