Zillow Upgraded to 'Buy' as Legal Pressures Ease and $1.25B Buyback Begins

Zillow (Z) shares received a rating upgrade to 'Buy' following a series of positive legal and strategic developments that have brightened the company's outlook. The upgrade comes as Compass dropped its lawsuit against Zillow, removing a significant legal overhang and reinforcing Zillow's dominant position in the real estate search market. In a major move to boost shareholder value, the company announced a massive $1.25 billion share buyback program, representing approximately 13% of its market capitalization. This buyback initiative signals strong management confidence in Zillow's valuation, which currently stands at 11.4x FY26 EV/EBITDA. Analysts believe the resolution of litigation combined with aggressive capital return strategies provides a powerful catalyst for the stock's performance. The easing of competitive pressures and improved financial flexibility are expected to drive long-term growth for the real estate technology giant.