Update shared on04 Sep 2025
Analysts remain upbeat on CoStar Group, highlighting continued strength across key platforms like Homes.com and Apartments.com, and expecting margin expansion from operating leverage, while the consensus price target remains unchanged at $97.12.
Analyst Commentary
- Bullish analysts cite strong investment returns and traction from the Homes.com platform as a key driver of future growth.
- Continued robust performance of Apartments.com is seen as validating the company's recurring revenue strength.
- Stable and consistent growth in LoopNet and CoStar Suite segments supports confidence in sustained top-line expansion.
- Broad-based booking strength in Q2 results has led to incremental optimism regarding the company’s near-term performance.
- Anticipated operating leverage is expected to deliver material margin expansion and significant EBITDA dollar growth over the medium-term.
What's in the News
- CoStar Group issued Q3 2025 revenue guidance of $800 million to $805 million (approximately 16% YoY growth at midpoint); net loss expected between $5.4 million and $0.6 million, with diluted net (loss) per share of $0.01.
- Full-year 2025 guidance updated to revenue of $3.135 billion to $3.155 billion (approximately 15% YoY growth at midpoint) and net income of $37.0 million to $46.0 million; diluted EPS of $0.09 to $0.11.
- CoStar Group was added to multiple Russell indices: Russell 3000E Growth, Russell Midcap Growth, Russell 3000 Growth, Russell 1000 Growth, Russell 3000 Growth Index, Russell 1000 Growth-Defensive Index, and Russell Midcap Growth Index.
Valuation Changes
Summary of Valuation Changes for CoStar Group
- The Consensus Analyst Price Target remained effectively unchanged, at $97.12.
- The Discount Rate for CoStar Group remained effectively unchanged, at 8.35%.
- The Consensus Revenue Growth forecasts for CoStar Group remained effectively unchanged, at 16.9% per annum.
Disclaimer
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