12:10 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $59, down $5, is 30x our 2025 EPS view of $1.95 (down $0.05; 2024's down $0.24 to $1.37), a discount to the 37x, one-year forward P/E mean. We switch to a 2025 EPS as we think it suggests a more accurate operational year but use a discount to the one-year forward P/E reflecting mortgage volatility. Q1 adj-EPS of $0.36 (+8.4% Y/Y) beat by $0.04 on revenue of $529M (+13% Y/Y), $21M above consensus. Growth was led by Rental (+31% Y/Y), Mortgage (+19%) and Residential trailed at 9% but performed better than ZG's guide. Adj-EBITDA of $125M reflects a 23.6% margin (+150 bps Y/Y) and a top-line beat. ZG is prioritizing its rentals segment and will increase its marketing spend going into Q2, which is projected to lift EBITDA expenses to $440M limiting adj-EBITDA to $85-$100M, below consensus. ZG retains its annual goal of growing revenue at a double-digit clip and achieving modest margin expansion. Reflecting ZG's first-time home buyer concentration, we cut our upside but keep a Buy.