It’s time for investors to jump on the Zillow bandwagon, according to JPMorgan. Analyst Dae Lee initiated coverage of the online real estate platform with an overweight rating with a price target of $48 per share. That estimate implies upside of nearly 20% from Friday’s close of $40.50. “We believe Zillow’s leadership as the most visited online real estate platform, core demand generation-based business model, solid margins (26% in ’22), and active share repurchase program best position Zillow to navigate the [near-term] real estate industry challenges and emerge stronger on the other end,” Lee wrote in a Monday note. “Additionally, Zillow has a healthy balance sheet to continue investing through N-T headwinds, which should strengthen its leadership position,” he added. To be sure, the analyst said that the company continues to struggle with macro headwinds, with revenue expected to fall 6% in the 2023 fiscal year before making a recovery. “The residential real estate industry is cyclical, and it currently is in a down cycle and faces affordability, mortgage rate volatility, & low inventory challenges,” Lee wrote. Zillow said earlier this month that average monthly unique users during the fourth quarter remained flat year over year, while visits fell 5% from the year-earlier period. “Visibility remains limited with seller and buyer sentiment ebbing and flowing with mortgage rate swings, but we take a view that the cycle is closer to the bottom & recovery will begin later in 2023,” the analyst continued. Shares of Zillow have surged almost 30% this year amidst a 30% tumble in the past 12 months. The stock was down 2.5% on Monday during premarket trading. —CNBC’s Michael Bloom contributed to this report.