03:54 PM EDT, 04/23/2024 (MT Newswires) -- Zillow Group ( ZG ) shares are reacting to concerns about future rates, regulations and competition, but the business is "plenty healthy," RBC Capital Markets said in a note Tuesday.

RBC's premier agent checks showed positive trends with stable to slightly increasing spending, solid new product activity, and minimal concerns about regulations or competition, the note said.

Conversations with premier agents aligned with or slightly exceeded typical seasonal patterns. Some agents who cut spending in Q4 have since increased it, with no evidence of significant changes due to higher rates, RBC said.

RBC has an outperform rating on Zillow ( ZG ) with a price target of $66. "We acknowledge it's unclear if sheer upside to numbers can get the stock working in light of these overhangs; however, fundamentally, we think the business is plenty healthy to justify our outperform rating," the brokerage said.

Price: 43.09, Change: +1.58, Percent Change: +3.79