In a surprise move, Australian billionaire James Packer bought 9.4% of Zillow Inc in the US. Cavalane Holdings, a Packer controlled investment vehicle, spent US$298m to acquire 3m shares - making Cavalane the second largest shareholder after fellow Australian fund Caledonia Private Investments.
Zillow is now valued at US$3.8 billion or an incredible 106 times (yes 106 times) forecast EBITDA for the next 12 months. Trulia, looks relatively cheap in comparison, being valued at "only" 56 times forecast EBITDA.
Shares in Zillow has tripled in value over the last 12 months compared with an increase of only 23% during the previous 12 months.
This move comes only a week after CEO Spencer Rascoff sold off 146,771 shares at an average price of US$82.
Additionally, a little as a month ago analysts were providing the Zillow stock with a neutral or "hold" rating. On the 8th August, Goldman Sachs confirmed a “neutral” rating on shares of Zillow with a $79 price target. Analysts at Telsey Advisory Group raised their price target from $57.00 to $70.00 in a research note to investors on Wednesday, August 7th. Finally, analysts at Canaccord Genuity raised their price target on shares of Zillow from $65.00 to $90.00 in a research note to investors on Wednesday, August 7th.