
CoStar Group (CSGP) Stock Forecast & Price Target
CoStar Group (CSGP) Analyst Ratings
Bulls say
CoStar Group has shown resilience and growth potential, achieving revenue of $1.0 billion last year, with a 10% increase driven by strategic M&A activities and organic growth. The company has also successfully improved its bookings, with a notable rise from $25 million in the first quarter to $45 million in the second quarter, indicating a robust demand for its core products. Additionally, the firm boasts impressive core EBITDA margins of 47%, reflecting the highly profitable nature of its subscription-based business model as it scales.
Bears say
CoStar Group's recent financial performance suggests a downward trajectory due to several key factors, including a significant decrease in margins from 40%+ in its core commercial real estate (CRE) business to high single digits, attributed primarily to residential investments. The company's free cash flow has been negatively impacted by substantial capital expenditures aimed at acquiring a new building and expanding facilities, totaling $704 million over 2024 and 2025. Compounding these challenges, the luxury segment has demonstrated weak rent growth of approximately 0.5% year-over-year, coupled with an 11.5% vacancy rate, indicating ongoing softness in CRE transactions that may further hinder future growth prospects.
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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