Zillow Group, Inc. Stock 12‑Month Price Target Cut to $44.73, Implies 56% Upside

Wells Fargo lowered Zillow Group's (ZG) price target to $31.00 from $35.00, maintaining an Equal-Weight rating. GuruFocus values ZG at $80.20, suggesting a 63.6% undervaluation at its current price of $29.16. The company has a GF Score of 65, indicating moderate performance with strengths in financial strength and growth.

The US Supreme Court declined to hear Zillow Group's appeal in a 2021 investor lawsuit, allowing the case to proceed. The lawsuit alleges Zillow misled investors about its home-flipping business, Zillow Offers, which was shut down in November 2021. The company reported a $300 million loss and announced workforce cuts. Investors claim Zillow's leadership made overly optimistic statements before the shutdown.

Zillow Group Inc. (Z) shares dropped 10% after a court denied its injunction request in a legal dispute with Compass, compounded by Fed rate hikes impacting the real estate sector. GF Value™ estimates Zillow as 62.3% undervalued at $29.82, with a GF Score™ of 64/100. Insider sales totaled $15.1M over the past year, while 7 premium gurus hold the stock with mixed activity.

A federal judge denied Zillow's injunction against the Chicago MLS (MRED) and Compass, allowing private listing networks to operate. The ruling may enable MLSes to expand nationally with private networks, though Zillow argues these networks harm transparency and market access. The case is now in arbitration, with Congress also scrutinizing the practices.

Zillow Group's shares (Z, ZG) are near 52-week lows around $30, amid challenging housing conditions due to rising mortgage rates. Q2 revenue grew 18% to $772M, with strong performance in rentals and mortgage segments. Management forecasts 2026 revenue of $2.92B-$2.96B and adjusted EBITDA of $730M-$760M. Despite a more appealing valuation, near-term upside may be limited by elevated mortgage rates.

Zillow (Z) faces legal setback as a court denies its injunction request against MRED, risking loss of Chicago listings. Stock fell 2% to $31.96. GF Value™ estimates Zillow is 59.5% undervalued at $31.96 vs. $78.88 intrinsic value. Insiders sold $15.1M shares over 12 months. GF Score™ is 64/100, with strong financial health but weak profitability.