Shares of Zillow Group Inc. ZGZ were rising 5% in Tuesday’s premarket action after Piper Sandler analyst Thomas Champion upgraded the stock to overweight from neutral. “We think an improving macro & share gains on top of easy compares sets up [Zillow] well into ’24,” he wrote in a note to clients. Champion thinks last quarter likely marked the trough for home-sales growth, while a stabilization of mortgage rates could catalyze demand. Additionally, he’s upbeat about the company’s ability to keep winning share of brokers’ advertising budgets. The first quarter marked the best year-over-year share-gain performance for the company’s Premier Agent business since 2018, Champion wrote. He upped his price target on the shares to $62 from $42.
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