JMP Securities analyst Ronald Josey says that Zillow's stock fell 5% yesterday on worries that its Lender Co- Marketing program is violating a law against lenders, agents and brokers paying or receiving any fees for referrals and prohibiting them from splitting fees when performing settlement service. However, Josey notes that Zillow says that lenders and agents can't refer business to each other. Consequently, he thinks that Zillow's program only consists of co-marketing. The analyst keeps a $43 price target and an Outperform rating on the stock.

Real Estate Services Analysts, along with James Dwiggns, CEO of NextHome, discuss the latest perspectives on the proposed National Association of Realtors (NAR) Settlement and the implications on brokerage business models (relevant companies ZG/Z, CSGP, COMP, RDFN, EXPI, HOUS, FTHM, REAX, RMAX) on an Analyst/Industry conference call to be held on May 1 at 11 am.

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.