Zillow's (Z, ZG) plan to launch Zillow Preview highlights the control and favorable optionality the company has due to its dominant category user engagement under almost any competitive scenario, RBC Capital Markets said in a note Tuesday.

Zillow Preview, which is set to debut next month, will allow consumers to access home listings before they hit the market, the company said Tuesday.

Zillow's announcement is key, considering that for the past few months, the company has been characterized as "too hard" with "too many overhangs" as it faces various lawsuits and credible competition, according to the note.

Analysts said Zillow's setup is looking "increasingly attractive," with its favorable optionality under almost any scenario becoming apparent, legal risk potentially declining, and increasing compounding partnership opportunities.

With the announcement of the Zillow Preview launch, analysts said Homes.com could be in a harder competitive position than before, reducing the likelihood of further lawsuits against Zillow.

RBC reaffirmed its outperform rating on the stock and a $95 price target.

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