
CoStar Group (CSGP) Stock Forecast & Price Target
CoStar Group (CSGP) Analyst Ratings
Bulls say
CoStar Group has demonstrated resilience and adaptability, achieving a revenue of $1.0 billion with a notable growth rate of 10%, driven by both organic performance and strategic acquisitions. The company's core EBITDA margins have reached a record 47%, highlighting the profitability of its business model as it focuses on expanding its salesforce and refocusing efforts on core products. Furthermore, the positive trends in net new bookings and the recent international expansions signal a strong long-term growth trajectory in various commercial real estate sectors.
Bears say
CoStar Group's outlook is negatively impacted by a decline in its consolidated margins, which have dropped to the high single digits due to increased spending on its residential segment, with anticipated margins of approximately 10% for the first half of 2025. Additionally, significant capital expenditures aimed at expanding facilities and acquiring new property have placed further strain on free cash flow, with projected investments totaling $704 million over 2024 and 2025. Compounding these challenges, the luxury segment has experienced minimal rent growth alongside a high vacancy rate, reflecting broader weaknesses in organic growth within the commercial real estate market, contributing to a compression in EBITDA margins and anticipated lower valuations for the core business.
This aggregate rating is based on analysts' research of CoStar Group and is not a guaranteed prediction by Public.com or investment advice.
CoStar Group (CSGP) Analyst Forecast & Price Prediction
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