A 'Wow' Qtr from CoStar Group (CSGP) - Needham & Company

July 26, 2013 8:10 AM EDT Send to a Friend
Get Alerts CSGP Hot Sheet
Price: $168.73 -0.18%

Rating Summary:
    8 Buy, 1 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 23
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Needham & Company boosted estimates and its price target on Buy-rated CoStar Group (NASDAQ: CSGP) from $115 to $165 following a "Wow" quarter.

Analyst Michael Huang comments, "Q2 performance was solid and impressive across the board, highlighted by continued solid bookings growth (record annualized net new sales of $14.4m, up 49% y/y vs. 13.8m, up 27% q/q in 1Q), surprisingly strong growth in the LoopNet lead-base (up to 140K Premium Searcher leads from 100K pre-acquisition), accelerated organic core LoopNet rev growth (Premium Lister and Searcher up 21% vs. 16.6% y/y 1Q13 vs. up 5.2% in 1Q12), successful Loop pricing increases and deal duration improvements (average term up to 7 months vs. 1 month pre-acquisition), impressive cross selling activity (4800 cross-selling deals in the quarter vs. 3,067 in 1Q), record new customer adds (1300 vs. 1,126 in Q1 vs. 1,292 in Q4), ramping UK activity (200 site subscriptions and 2nd highest UK bookings quarter ever, with 60% new sales/40% upgrade) and stable retention rates (trailing 12 month retention rate was 94%)."

The firm raised FY 2013 EPS from $2.14 to $2.32 and FY 2014 EPS from $2.80 to $2.86.

For an analyst ratings summary and ratings history on CoStar Group click here. For more ratings news on CoStar Group click here.

Shares of CoStar Group closed at $157.02 yesterday.


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