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Zillow Group ( Z ) stock jumped on Tuesday after the leading online real estate listings company got a price target boost and rating upgrade from RBC Capital Markets, which cited strong online traffic trends. Zillow stock was up almost 3% in afternoon trading in the stock market today , near 24, off earlier highs of the session. RBC upgraded Zillow to outperform from sector perform. The investment bank increased its price target on Zillow stock to 34 from 21. Zillow holds an IBD Composite Rating of just 46 out of a possible 99 at moment. The stock has been trading above its 50-day moving average since late February, but by Tuesday afternoon it was only at the level where it closed 2015. RBC analyst Mark Mahaney wrote in an industry report on Tuesday that 40% of agents in their latest survey indicated they would increase their spending on Zillow, compared to 34% on Realtor.com and 33% on Zillow-owned Trulia. The percentage of real estate agents who advertise online using Zillow rose to a record-high 38% in 2016, up from 27% a year earlier and 32% in 2014, according to RBC’s 4 th Annual Online Real Estate Agent Survey, according to Mahaney. “Trulia’s share slipped modestly (29% from 32% in 2015), while Realtor.com maintained a leading 50% position,” Mahaney said. Zillow also scored well with high-spending “super agents,” he said, with Zillow’s share of agents who shell out more than $500 per month in online advertising coming in at 57%. “Further, a large majority (62%) of $500 monthly spenders plan to increase spend on Zillow,” Mahaney said. Seattle-based Zillow completed its $2.5 billion purchase of top competitor Trulia in February 2015. The union put the two most-visited real estate websites under the same ownership and formed the Zillow Group in a move designed to expand reach, forge efficiencies and cut costs. Both the Zillow and Trulia websites remain in operation and attract homebuyers and renters, as well as real estate agents who pay to advertise alongside the home listings on the sites. Move Inc. is the parent of rival online real estate site Realtor.com, which is an official website of the National Association of Realtors. Media empire News Corp. ( NWS ) bought Move in 2014. New ad products, including video ads, could bring $40 million to $90 million to 2016 revenue, JMP Securities analyst Ronald Josey wrote in an industry research report on Oct. 21, 2015. The new ad products “can drive pricing gains into 2017,” he said. A record high 44% of U.S. buyers found their home using the Internet in 2015 vs. 43% in 2014, said RBC, citing National Association of Realtors trade group research. Scalper1 News
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