CoStar Group (CSGP) Stock Fair Value Edges Lower As Analysts Flag Execution Risk

The fair value estimate for CoStar Group has been adjusted from US$37.30 to US$35.85, signaling a slightly more cautious stance on the stock. This move aligns with recent analyst commentary that balances optimism about long term opportunities with concern about near term execution risk, reflected in price targets now clustering between US$30 and US$44. As you read on, you will see how these changing targets fit into the broader CoStar Group story and what to watch to stay on top of the evolving narrative.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value CoStar Group.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

• Goldman Sachs keeps a Buy rating on CoStar Group and highlights healthy renewals and momentum at LoopNet as supportive factors for the long term story, even as near term bookings are under pressure.

• Goldman Sachs also points to planned sales hiring into 2027 as a way for CoStar Group to rebuild sales capacity and potentially convert a larger pipeline of bookings into future revenue.

• BMO Capital maintains a Market Perform rating after the US$800m Zonda acquisition and notes that Zonda broadens CoStar Group's reach into the home building ecosystem with additional proprietary data.

🐻 Bearish Takeaways

• Goldman Sachs cuts its price target from US$40 to US$36 and flags execution risk, citing a 56% year over year decline in annualized net new bookings and softer trends at Apartments.com and Homes.com along with a US$35m reduction in underlying revenue guidance.

• JPMorgan and Keefe Bruyette both trim their targets, with JPMorgan moving from US$52 to US$44 and Keefe Bruyette from US$34 to US$30, which signals a more cautious stance on valuation and near term growth for CoStar Group following recent results.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!

See how CoStar Group's fair value stacks up across multiple valuation models — not just analyst targets.

How This Changes the Fair Value For CoStar Group

• The fair value estimate for CoStar Group moves from US$37.30 to US$35.85.

• The revenue growth assumption changes from 10.84% to 8.38%.

• The net profit margin assumption adjusts from 13.97% to 14.49%.

• The future P/E multiple shifts from 24.91x to 23.06x.

• The discount rate moves from 8.46% to 8.47%.

Never Miss an Update: Follow The Narrative

Narratives connect CoStar Group's business story to a structured set of forecasts and a fair value estimate that update as new information arrives. They help you see how product moves, acquisitions and execution risks fit together in one cohesive view.