
CoStar Group (CSGP) Stock Forecast & Price Target
CoStar Group (CSGP) Analyst Ratings
Bulls say
CoStar Group has experienced significant growth momentum, with revenue totaling $1.0 billion and a notable increase of 10%, driven by organic growth of 6% alongside the integration of hotel data vendor STR, which contributed approximately 4 percentage points. The company's proactive strategy of refocusing its salesforce and expanding its team by around 500 employees has resulted in an uptick in net new bookings over recent quarters, highlighting an effective approach to reviving growth amidst challenging market conditions. Historically resilient, CoStar Group managed to achieve high-teen growth during the pandemic and sustained positive performance despite adverse factors such as high inflation and a tough commercial real estate market backdrop.
Bears say
CoStar Group's financial outlook appears negative primarily due to a significant decline in consolidated margins attributed to heavy investments in the residential sector, which are expected to dip to the high single digits by 2025. Additionally, free cash flow (FCF) is under pressure from substantial capital expenditures related to acquisitions and facility expansions totaling over $700 million across 2024 and 2025, which further exacerbates cash flow challenges. Lastly, with EBITDA margins compressing to as low as 9% in 2024 and only a slight recovery projected for the following year, the overall financial health of the company is hindered by slower growth in its luxury segment and high vacancy rates.
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
Start investing in CoStar Group (CSGP)
Order type
Buy in
Order amount
Est. shares
0 shares