Zillow Group Inc. (Z) shares surged 5.35% in pre-market trading on Friday, as the real estate technology company reported better-than-expected third-quarter results and provided an optimistic outlook for the fourth quarter. The stock's upward movement was further supported by a target price increase from a major Wall Street firm.

In its Q3 earnings report, Zillow posted a profit of 4 cents per share, surpassing analysts' estimates of 2 cents per share. The company's revenue for the quarter came in at $676 million, exceeding expectations of $671 million. Looking ahead, Zillow provided a robust fourth-quarter revenue forecast ranging from $645 million to $655 million, surpassing the consensus estimate of $644 million.

Adding to the positive sentiment, JP Morgan raised its target price for Zillow from $94 to $95, signaling confidence in the company's future performance. This analyst upgrade, combined with the strong financial results and upbeat guidance, appears to be driving investor enthusiasm for Zillow stock in the pre-market session.