Zillow Group downgraded to Hold on macro pressures at Canaccord - InvestingChannel

Zillow Group downgraded to Hold on macro pressures at Canaccord

Canaccord analyst Maria Ripps downgraded Zillow Group to Hold from Buy with a price target of $34, down from $48, post the Q3 results. The company’s guidance for Q4 came in meaningfully below expectations, reflecting a worsening real estate environment with rising, volatile mortgage rates impacting affordability and constricting shopping behavior, Ripps tells investors in a research note. With mortgage rates at 20-year highs and more volatile than at any time since the early 1980s, the analyst sees risk to estimates for next year and the possibility of an extended sales decline and associated margin pressure for Zillow. Therefore, she downgrades the stock “until the macro picture improves.”

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