In today's session, Zillow (NASDAQ: ZG) saw a significant jump in its stock price, with gains of around seven percent. This is the largest daily jump in the stock in the past two months. The increase comes after Bank of America upgraded the stock to "buy" from "underperformed." In a note, analyst Curtis Nagel stated that while the first half of 2023 may be a challenge, he and his team are "more confident that growth can return to double digits in 2024" due to improving affordability. The new price target for Zillow is $42, significantly higher than its previous target of $22.
This news is a positive sign for Zillow and its investors, as it suggests that the company's performance may improve in the coming years. However, it's important to note that the housing market as a whole is currently facing challenges, with high interest rates making it less appealing for potential homebuyers. Still, as the prediction from Bank of America suggests, it's possible that the market may improve in the second half of this year and into 2024.
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