As previously reported, Morgan Stanley analyst Jonathan Lanterman downgraded Zillow to Equal Weight from Overweight after the company recently announced plans for a new home buying and selling business, Zillow Instant Offers. While he notes that while the Homes opportunity is large, Lanterman also sees it as lower quality and riskier. He additionally believes "the optics have emboldened short sellers," stating that Zillow entering the new Homes business has played into their narrative. The analyst lowered his price target on Zillow to $50 from $55, assigning $47 per share in value to its core IMT business and $3 for its new Homes business.