
CoStar Group (CSGP) Stock Forecast & Price Target
CoStar Group (CSGP) Analyst Ratings
Bulls say
CoStar Group has demonstrated resilience and growth potential, with a revenue of $1.0 billion last year, reflecting a 10% increase driven by a combination of organic growth and strategic acquisitions, such as the integration of hotel data vendor STR. The company's robust subscription-based revenue model, constituting over 80% of total revenue, underpins its financial stability and predictability in cash flows. Additionally, recent efforts to enhance its salesforce and expand its workforce have resulted in increased net new bookings, indicating a positive momentum in sales and a commitment to revitalizing growth in various international markets.
Bears say
The CoStar Group is experiencing a negative outlook due to declining consolidated margins, exacerbated by substantial investments in its residential business, which have affected free cash flow (FCF) and compressed EBITDA margins significantly. While the core commercial real estate (CRE) segment maintains a robust margin of over 40%, the company's overall profitability has deteriorated, with projections of EBITDA margins dropping to 9% in 2024 and improving only marginally to 12.5% in the current year. Additionally, the considerable capital expenditures related to building acquisitions ($343 million in 2024) and facility expansions ($361 million in 2025) are further straining financial resources, raising concerns about future growth and profitability.
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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