CoStar Group's (CSGP) Homes.com Execution Can Drive EBITDA Outperformance - Citizens

Citizens analyst Andrew Boone reiterated a Market Outperform rating and $100.00 price target on CoStar Group (NASDAQ: CSGP).

The analyst commented, "We maintain our Market Outperform rating and $100 price target. CoStar’s core business continues to be healthy and profitable as Commercial Real Estate Information and Marketplace EBITDA margins expanded to 47%. With Homes.com monetization building as net new bookings totaled $16M in 3Q25, up from $10M in 2Q25, and its sales force maturing, we believe peak Homes.com investments are now behind the company, allowing for company-wide EBITDA growth. With consolidation among U.S. portals after Redfin was acquired by Rocket (RKT, NC) and the company making discretionary investments that improve the strategic nature of its information businesses as it can now extend into residential real estate, we want to be here as the residential real estate business matures. Net/net, the bet we are making today is that CoStar will execute upon its Homes.com growth strategy (more likely) or pull back on investments (less likely), which could lead EBITDA to outperform expectations. We think it can achieve this, therefore we maintain our Market Outperform rating and unchanged $100 price target."

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 $78.23 yesterday.

You May Also Be Interested In

• North American Construction (NOA) Tops Q2 EPS by 9c; Offers Guidance
• Park Dental Partners, Inc. (PARK) Tops Q2 EPS by 28c
• Mannatech (MTEX) Tops Q2 EPS by 53c