With a market cap of $32.4 billion, CoStar Group, Inc. (CSGP) is a leading provider of information, analytics, and online marketplace services for the global commercial real estate industry. Its comprehensive platform includes property data, leasing and sales tools, marketing solutions, and marketplaces such as LoopNet, Apartments.com, and Ten-X, serving a wide range of real estate professionals and organizations.
Shares of the Arlington, Virginia-based company have underperformed the broader market over the past 52 weeks. CSGP has declined 12.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.5%. However, shares of CoStar Group are up 7.4% on a YTD basis, outpacing SPX’s 1.4% rise.
Zooming in further, CoStar Group’s underperformance becomes more evident when compared to the Real Estate Select Sector SPDR Fund’s (XLRE) 8.6% gain over the past 52 weeks.
Shares of CSGP dropped 10.3% following its Q1 2025 release on Apr. 29 due to investor concerns over the reported net loss of $15 million or $0.04 per share, despite strong revenue growth of 12% year-over-year to $732.2 million. The loss was primarily driven by a $31 million negative impact from the Matterport acquisition, which overshadowed the 429% increase in adjusted EBITDA to $66 million.
For the current fiscal year, ending in December 2025, analysts expect CSGP’s EPS to decline 16.7% year-over-year to $0.45. Nevertheless, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” three “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago, with seven “Strong Buy” ratings on the stock.
On Apr. 30, Needham raised its price target for CoStar Group to $98 and reaffirmed a “Buy” rating, citing strong Q1 results that beat expectations and successful integration of Matterport.
As of writing, CSGP is trading below the mean price target of $87.85. The Street-high price target of $103 implies a potential upside of 33.9% from the current price.
