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Zillow upgraded to buy as legal wins and buyback boost confidence amid housing market risks

Analyst Insights
05 Apr 2026
Seeking Alpha
View Source
Bullish
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Zillow has been upgraded to a buy rating following positive legal and strategic developments, including Compass dropping its lawsuit against Zillow. This move strengthens Zillow's leading position in real estate search and reduces threats from traditional brokerages. The stock is attractively valued at 11.4 times FY26 EV/EBITDA, supported by a $1.25 billion share buyback representing 13% of its market cap, signaling strong management confidence. While risks from a slow housing market and reliance on Premier Agent remain, these are considered priced in and balanced by Zillow's recent legal victories and monetization opportunities.

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