CoStar Group (CSGP) Stock Forecast & Price Target

CoStar Group is attractive because its core commercial real estate franchise continues to compound through subscriber growth, strong renewal rates, and improving bookings, while its proprietary data moat and broad product suite support durable pricing power. The latest results showed $952 million of revenue, adjusted EBITDA of $229 million with a 24.1% margin, and management raised FY26 EBITDA to $820 million–$840 million while identifying about $200 million of additional savings over the next 12–18 months. Although Homes.com has been a large drag, the salesforce reduction from about 700 to 315 and signs of scaling revenue suggest the investment peak may be behind it, creating a clearer path to margin expansion and stronger consolidated profitability.

CoStar Group is facing a negative setup because new bookings declined for a second straight quarter, missed expectations for the fifth time in a row, and were down 56% year over year, signaling weakening demand momentum. Organic revenue growth is slowing to 7% in 3Q and about 5% in the 4Q guide, with the implied outlook only holding up because of acquisitions such as Zonda contributing about $41 million to revenue. Although EBITDA beat at $229 million and cost cuts support margins, softer CRE activity, uncertain residential investments, and acquisition integration risks could keep growth muted and pressure valuation.