Trulia rallies following bullish Deutsche note; Zillow also up


Deutsche's Lloyd Walmsley is reiterating a Buy and $65 PT for Trulia (TRLA +4.3%), and declares the online/mobile real estate platform has one of "the most compelling valuations relative to growth" among small-cap Internet names.

Walmsley considers a valuation of 11.9x 2015E EBITDA to be inexpensive, especially since slower-growing Move (MOVE +0.5%) is trading at 12.6x 2015E EBITDA. "To get to a peer group multiple on 2015 would imply zero margin expansion for two years!"

He also thinks Trulia continues to perform well in the face of a cooling housing market, doesn't expect the company to shell out for a TV ad campaign or acquisition until recently-acquired Market Leader shows more traction.

Rival Zillow (Z +2.4%), which has a habit of moving in the same direction as Trulia, is also rallying. Both companies are up sharply on the year, but are also well off their September highs.

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Comments (1)
  • mapgirl
    , contributor
    Comments (46) | Send Message
     
    Deutsche Bank was one of the underwriters of the Trulia (TRLA) iIPO in September of 2012. Not a surprise they upgrade the stock as it falls below support the prior day. Buyer beware.
    14 Dec 2013, 10:49 AM Reply Like
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