Evercore ISI has reiterated an Outperform rating and maintained a $95.00 price target on Zillow Group (NASDAQ:ZG) ahead of the companys fourth-quarter 2025 earnings release, which is scheduled for February 10. The research shop has labeled Zillow a Tactical Outperform as it expects a "Modest Beat & Bracket Q4:25," a view grounded in intra-quarter indicators, sensitivity analysis of its models, and the companys prior reporting track record.
Shares of Zillow have fallen roughly 30% since mid-September and were trading at $54.50, close to a 52-week low of $53.37. InvestingPro data cited by analysts indicates that the stocks relative strength index points toward oversold conditions. Despite the recent price weakness, Evercore sees current multiples - about 16X EV/EBITDA and 21X EV/FCF - as appealing, while noting that Zillow has not been profitable over the last twelve months.
In its assessment, Evercore describes Zillow as "one of the least risky setups into Q4," highlighting several inputs behind that view: modest Street expectations for sequential performance, housing demand data that the firm deems supportive, and the presence of diversified growth drivers within Zillows business model. The research house also flagged potential near-term upside catalysts, including the prospect of legal or regulatory developments easing for the company.
Recent legal news favored Zillow when a U.S. judge ruled in its favor in a case brought by Compass Inc. The decision permits Zillow to continue enforcing a policy that requires listings to be posted to a local multiple-listing service within 24 hours of being publicly marketed elsewhere.
Other broker activity has been mixed. KeyBanc lowered its price target to $75, citing lower multiples across technology stocks, but kept an Overweight rating. Barclays moved in the other direction by upgrading Zillow to Equalweight, citing improved execution and projecting mid-teens revenue growth and mid to high 20s adjusted EBITDA growth for 2025. Bernstein SocGen Group reiterated an Outperform rating while trimming its price target to $95 because of concerns tied to lawsuits; that firm nevertheless described the fundamental outlook as strong and characterized estimates as beatable.
These analyst moves and the legal ruling arrive as Zillow contends with competitive pressures and ongoing legal matters while continuing to emphasize growth and execution. Evercores positioning - combining a tactical call into the quarter with a focus on relative downside protection - reflects the firms view that the risk-reward into the Q4 report is favorable, given current valuation, observable demand signals and the potential for regulatory clarity.
Coverage context and market implications
The debate among sell-side firms underscores differing views on valuation multiples in the broader technology and real estate services sectors and how legal outcomes may influence operational levers. Analysts cited a mix of execution improvements, top-line growth expectations for 2025, and legal developments as primary factors shaping near-term stock performance.