Bernstein reiterated an Outperform rating for Zillow Group (ZG) and left its price target unchanged at $95.00 after a court granted a favorable preliminary injunction in Zillow’s legal dispute with Compass. Zillow shares are trading at $54.60, well below the 52-week high of $90.22.
The legal outcome - a ruling on the preliminary injunction - is being viewed by Bernstein as a constructive development for Zillow. The firm said the decision helps remove a stream of legal headlines that have weighed on Zillow’s valuation multiple and could reduce the potential spread of Private Listings, a competitive concern that had raised questions about Zillow’s access to inventory and the strength of its moat.
Bernstein’s note emphasized two primary implications of the ruling: first, it begins to clear the company of legal uncertainty that has contributed to compression in valuation multiples; second, it may slow the proliferation of Private Listings that had been identified as a risk to Zillow’s inventory pipeline. The research house did not forecast specific near-term earnings outcomes but expressed a constructive view on Zillow’s 2026 prospects and described the current share price as an attractive entry point.
Market data show Zillow’s stock has come under recent pressure. InvestingPro metrics cited by analysts indicate the shares slipped 11.74% over the past week and are down 29.69% over six months, with technical indicators suggesting oversold conditions. Despite the decline, InvestingPro also reports Zillow is trading near its Fair Value and offers additional insights and a comprehensive research report on the company.
Analysts outside Bernstein presented a range of views in recent coverage. Evercore ISI maintained an Outperform rating and likewise set a $95.00 price target, projecting that intra-quarter data and Zillow’s historical performance point to modest upside versus expectations for the upcoming fourth-quarter 2025 earnings report. KeyBanc adjusted its price target lower to $75.00 from $90.00, citing a general decrease in technology sector multiples while retaining an Overweight stance. Barclays upgraded Zillow to Equalweight and raised its target to $72.00, citing stronger execution and anticipated revenue and EBITDA growth.
On the balance sheet front, analysts note Zillow’s financial position remains solid, with more cash than debt. Street projections compiled by analysts point to an expectation that the company will reach profitability this year.
The legal ruling also included a separate judicial decision allowing Zillow to continue its listing rules in the face of the challenge brought by Compass Inc. That ruling is part of the broader legal backdrop that has influenced investor sentiment and valuation metrics for the stock in recent months.
With the company set to report earnings on Feb. 10, the immediate focus for investors and analysts will be how the legal news factors into guidance, revenue trends, and margin dynamics. Bernstein’s reaffirmation of an Outperform rating and its unchanged $95.00 target underscores the firm’s continued conviction in Zillow’s fundamental outlook despite recent share-price weakness and legal headwinds.
Contextual note - InvestingPro is referenced as a source of data and analytical coverage used by market participants evaluating Zillow’s valuation and technical condition.