Barclays has upgraded Zillow Group (NASDAQ: ZG) from an Underweight to an Equalweight rating and raised its 12-month price target to $72 from $66. The revised target implies roughly an 11% upside relative to Zillow’s recent share price of $65, and reflects a company market value in the vicinity of $15.9 billion.
The research note frames the move around operational progress. Barclays says Zillow is on track to deliver mid-teens revenue growth and mid to high 20s adjusted EBITDA growth for a second straight year in 2025, and that preliminary guidance for 2026 points to a similar trajectory. Supporting the narrative, InvestingPro data cited by Barclays shows Zillow recorded 15.17% revenue growth over the last twelve months. Barclays also flags that the stock has shown pronounced volatility, noting a beta of 2.03.
Despite the upgrade, Barclays remains cautious about several unresolved issues. The firm calls out an unclear path on EHS and affordability, ongoing legal battles that could weigh on results or sentiment, and intensified competition across the real estate technology landscape. Barclays says it is not yet fully convinced a residential recovery story is established, although it does recognise some "green shoots" in transaction activity. The firm argues that a more sustained improvement in residential transactions would likely trigger material upward revisions to estimates for Zillow.
Barclays summarises its view by saying Zillow shares now present a "more balanced risk reward" entering 2026, which underpins the move to an Equalweight rating rather than a more positive designation.
Brokerage activity around Zillow has been mixed recently. Mizuho downgraded Zillow to Neutral from Outperform and cut its price target to $70 from $100, attributing the change to uncertainty in the housing market and litigation concerns. Bernstein, by contrast, reiterated an Outperform rating while trimming its price target to $95, signalling confidence in the company’s fundamentals even as it lowers expectations. Citizens adjusted its price target to $85 from $90, citing increased competition after a merger involving Compass. Benchmark kept a Buy rating and a $95 price target despite a notable market-value decline following Google’s testing of real estate listings; Benchmark referenced prior instances in which Google’s real estate initiatives were later discontinued.
Taken together, recent analyst moves underline a divided view among sell-side firms: some are downgrading or reducing price targets amid market and litigation uncertainty, while others are staying constructive on Zillow’s fundamental prospects.
Context for investors
Barclays’ upgrade hinges on execution that has produced consecutive years of robust top-line and adjusted EBITDA growth, according to the firm’s note. Yet the firm’s continued caution on the recovery narrative and its callouts on regulatory, legal, and competitive risks suggest that upside remains conditional on broader market improvements and resolution of company-specific overhangs.