CoStar Group Stock Investment Opportunity Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy CSGP?
Source: Yahoo Finance
- Rating Change: Wells Fargo lowered CoStar Group's price target from $55 to $48 with an Underweight rating, citing recent declines in information services stocks due to AI-related concerns, although they view many market reactions as unwarranted, indicating attractive buying opportunities.
- Analyst Upgrade: BTIG analyst Jake Fuller upgraded CoStar Group from Neutral to Buy with an $80 price target, highlighting low market expectations and noting that Homes.com is gaining momentum, with an upcoming AI-driven product update expected to resonate with investors.
- Revenue Forecast Increase: BTIG raised revenue estimates for CoStar Group for Q4 and FY 2026, anticipating a ramp-up in bookings and double-digit organic growth, suggesting the company may exceed Street expectations and demonstrating strong business potential.
- Market Environment Analysis: Despite the downward pressure in the AI market, CoStar Group is still viewed as an attractive investment due to its proprietary data and information analytics services, showcasing its competitive edge in the global market context.
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Analyst Views on CSGP
Wall Street analysts forecast CSGP stock price to rise
13 Analyst Rating
8 Buy
4 Hold
1 Sell
Moderate Buy
Current: 44.990
Low
48.00
Averages
74.92
High
101.00
Current: 44.990
Low
48.00
Averages
74.92
High
101.00
About CSGP
CoStar Group, Inc. is a provider of online real estate marketplaces, information, and analytics in the property markets. It manages its business in two segments: North America, which includes the United States and Canada, and International, which primarily includes Europe, Asia-Pacific and Latin America. Its major brands include CoStar, a global provider of commercial real estate data, analytics, and news; LoopNet, a commercial real estate marketplace; Apartments.com, a platform for apartment rentals; and Homes.com, a residential real estate marketplace. Its other brands include STR, which is engaged in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a residential property portal in the United Kingdom. The Company, through Matterport, Inc., is advancing property insights and driving the growth of AI-driven digital twin technology across the global commercial and residential real estate sector.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CoStar Group Stock Investment Opportunity Analysis
- Rating Change: Wells Fargo lowered CoStar Group's price target from $55 to $48 with an Underweight rating, citing recent declines in information services stocks due to AI-related concerns, although they view many market reactions as unwarranted, indicating attractive buying opportunities.
- Analyst Upgrade: BTIG analyst Jake Fuller upgraded CoStar Group from Neutral to Buy with an $80 price target, highlighting low market expectations and noting that Homes.com is gaining momentum, with an upcoming AI-driven product update expected to resonate with investors.
- Revenue Forecast Increase: BTIG raised revenue estimates for CoStar Group for Q4 and FY 2026, anticipating a ramp-up in bookings and double-digit organic growth, suggesting the company may exceed Street expectations and demonstrating strong business potential.
- Market Environment Analysis: Despite the downward pressure in the AI market, CoStar Group is still viewed as an attractive investment due to its proprietary data and information analytics services, showcasing its competitive edge in the global market context.
See More
JPMorgan: AI Disruption Fears Overstated for Software Sector
- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
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Homes.com Releases Home Price Trends Report Through January 2026
- Continued Price Appreciation: As of January 2026, the nationwide median home sale price increased from $370,000 in January 2025 to $374,900, with an average annual growth rate of 2.8%, indicating market stability and potential investment appeal.
- Improved Negotiation Balance: The inventory of homes available for purchase equated to four months of supply, and the median days on the market was nearly 12 weeks, suggesting a balanced negotiating power between buyers and sellers, which could enhance market activity.
- Regional Market Disparities: Philadelphia saw the highest median home price growth at 8.6%, while cities in the South and West, such as Raleigh, North Carolina, experienced declines of -4.3%, reflecting significant regional market differences.
- Optimistic Market Outlook: Brad Case, Chief Residential Economist at Homes.com, noted that while home prices continue to rise, the pace is no longer alarming as in previous years; combined with income growth and declining mortgage rates, this significantly improves affordability for buyers, suggesting a positive outlook for the spring homebuying season.
See More
Nationwide Home Prices Rise 1.3% Year-Over-Year as Market Balance Improves
- Home Price Growth: The nationwide median home sale price increased from $370,000 in January 2025 to $374,900 in January 2026, reflecting a year-over-year growth of 1.3%, indicating a trend of sustained appreciation despite a slower pace compared to previous years, which suggests market stability.
- Income vs. Home Prices: Over the past two years, home prices have averaged a 2.8% annual increase, nearly matching overall inflation, while incomes have risen at a faster rate, improving affordability for prospective homebuyers and indicating a more favorable market for first-time buyers.
- Market Supply and Demand Balance: The inventory of homes available for sale in January equated to four months of supply, with homes averaging nearly 12 weeks on the market, indicating a relatively balanced negotiating position between buyers and sellers, which facilitates smoother transactions.
- Regional Market Performance: Philadelphia saw the highest median home price growth at 8.6%, while cities like Baltimore, Washington D.C., and Boston also showed strong performance, highlighting the recovery potential in Northeast and Midwestern markets.
See More
Zillow Confronts Multiple Lawsuits: What’s Impacting Its Stock Performance?
- Legal Challenges: Zillow Group faced multiple legal battles in 2025, impacting its operations and financial results.
- Financial Reporting: The company disclosed its financial results for 2025, revealing the financial implications of the ongoing legal issues.
See More
PayPal's CEO Change Sparks Stock Volatility
- Executive Shakeup Impact: PayPal's CEO Alex Chris is replaced after less than two years, resulting in a nearly 20% drop in stock price following earnings reports, indicating strong market reaction to management changes that could undermine investor confidence.
- Performance Decline Warning: While PayPal reported a 9% increase in total payment volume, a 5% drop in transactions per active account highlights challenges in user growth and profitability, potentially affecting future market competitiveness.
- New CEO Challenges: The appointment of Enrique Lores raises concerns due to his lackluster performance at HP, leading investors to question his ability to effectively drive PayPal's transformation, which may impact the company's strategic direction.
- Market Valuation Slump: With a current P/E ratio around 8.5, significantly below market averages, PayPal is seen as a value investment opportunity; however, investor concerns about future growth may lead to further stock price pressure.
See More
CoStar Group Stock Investment Opportunity Analysis
- Rating Change: Wells Fargo lowered CoStar Group's price target from $55 to $48 with an Underweight rating, citing recent declines in information services stocks due to AI-related concerns, although they view many market reactions as unwarranted, indicating attractive buying opportunities.
- Analyst Upgrade: BTIG analyst Jake Fuller upgraded CoStar Group from Neutral to Buy with an $80 price target, highlighting low market expectations and noting that Homes.com is gaining momentum, with an upcoming AI-driven product update expected to resonate with investors.
- Revenue Forecast Increase: BTIG raised revenue estimates for CoStar Group for Q4 and FY 2026, anticipating a ramp-up in bookings and double-digit organic growth, suggesting the company may exceed Street expectations and demonstrating strong business potential.
- Market Environment Analysis: Despite the downward pressure in the AI market, CoStar Group is still viewed as an attractive investment due to its proprietary data and information analytics services, showcasing its competitive edge in the global market context.
See More
JPMorgan: AI Disruption Fears Overstated for Software Sector
- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
See More
Homes.com Releases Home Price Trends Report Through January 2026
- Continued Price Appreciation: As of January 2026, the nationwide median home sale price increased from $370,000 in January 2025 to $374,900, with an average annual growth rate of 2.8%, indicating market stability and potential investment appeal.
- Improved Negotiation Balance: The inventory of homes available for purchase equated to four months of supply, and the median days on the market was nearly 12 weeks, suggesting a balanced negotiating power between buyers and sellers, which could enhance market activity.
- Regional Market Disparities: Philadelphia saw the highest median home price growth at 8.6%, while cities in the South and West, such as Raleigh, North Carolina, experienced declines of -4.3%, reflecting significant regional market differences.
- Optimistic Market Outlook: Brad Case, Chief Residential Economist at Homes.com, noted that while home prices continue to rise, the pace is no longer alarming as in previous years; combined with income growth and declining mortgage rates, this significantly improves affordability for buyers, suggesting a positive outlook for the spring homebuying season.
See More
Nationwide Home Prices Rise 1.3% Year-Over-Year as Market Balance Improves
- Home Price Growth: The nationwide median home sale price increased from $370,000 in January 2025 to $374,900 in January 2026, reflecting a year-over-year growth of 1.3%, indicating a trend of sustained appreciation despite a slower pace compared to previous years, which suggests market stability.
- Income vs. Home Prices: Over the past two years, home prices have averaged a 2.8% annual increase, nearly matching overall inflation, while incomes have risen at a faster rate, improving affordability for prospective homebuyers and indicating a more favorable market for first-time buyers.
- Market Supply and Demand Balance: The inventory of homes available for sale in January equated to four months of supply, with homes averaging nearly 12 weeks on the market, indicating a relatively balanced negotiating position between buyers and sellers, which facilitates smoother transactions.
- Regional Market Performance: Philadelphia saw the highest median home price growth at 8.6%, while cities like Baltimore, Washington D.C., and Boston also showed strong performance, highlighting the recovery potential in Northeast and Midwestern markets.
See More
Zillow Confronts Multiple Lawsuits: What’s Impacting Its Stock Performance?
- Legal Challenges: Zillow Group faced multiple legal battles in 2025, impacting its operations and financial results.
- Financial Reporting: The company disclosed its financial results for 2025, revealing the financial implications of the ongoing legal issues.
See More
PayPal's CEO Change Sparks Stock Volatility
- Executive Shakeup Impact: PayPal's CEO Alex Chris is replaced after less than two years, resulting in a nearly 20% drop in stock price following earnings reports, indicating strong market reaction to management changes that could undermine investor confidence.
- Performance Decline Warning: While PayPal reported a 9% increase in total payment volume, a 5% drop in transactions per active account highlights challenges in user growth and profitability, potentially affecting future market competitiveness.
- New CEO Challenges: The appointment of Enrique Lores raises concerns due to his lackluster performance at HP, leading investors to question his ability to effectively drive PayPal's transformation, which may impact the company's strategic direction.
- Market Valuation Slump: With a current P/E ratio around 8.5, significantly below market averages, PayPal is seen as a value investment opportunity; however, investor concerns about future growth may lead to further stock price pressure.
See More
