As previously reported, Barclays analyst Deepak Mathivanan downgraded Zillow (ZG) to Underweight from Equal Weight in a note partially titled "Worst Is Yet To Come," citing his expectations for a "material erosion" in unit economics in its Homes division, the operational challenges facing the company in buying, fixing up, and selling homes at scale and the fact that he thinks the company's efforts to slowly transition its core PA business closer to transaction will keep revenue growth muted in the near-term. While returning CEO Rich Barton is "one of the best executives in internet," Mathivanan said he thinks "the deck is stacked heavily against" Zillow. He maintains a $32 price target on Zillow shares.

Jefferies raised the firm's price target on Zillow to $77 from $75 and keeps a Buy rating on the shares. The firm expects upside in Q1, though higher mortgage rates and softer housing data exiting the quarter could encourage Zillow to guide Q2 conservatively. Still, the firm sees tailwinds from new products driving upside to consensus in the coming years, the analyst added in a preview note for the U.S. Internet group.