Royal Bank Of Canada Issues Pessimistic Forecast for CoStar Group (NASDAQ:CSGP) Stock Price

CoStar Group (NASDAQ:CSGP) had its target price decreased by equities researchers at Royal Bank Of Canada from $75.00 to $57.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a “sector perform” rating on the technology company’s stock. Royal Bank Of Canada’s price target points to a potential upside of 26.67% from the stock’s current price.

Several other research firms have also weighed in on CSGP. Deutsche Bank Aktiengesellschaft set a $68.00 target price on CoStar Group in a report on Thursday, January 8th. BMO Capital Markets decreased their price objective on shares of CoStar Group from $77.00 to $72.00 and set a “market perform” rating on the stock in a research report on Thursday, January 8th. Keefe, Bruyette & Woods dropped their target price on shares of CoStar Group from $75.00 to $70.00 and set an “outperform” rating for the company in a report on Wednesday. The Goldman Sachs Group restated a “buy” rating and set a $84.00 target price on shares of CoStar Group in a research report on Wednesday, January 14th. Finally, Needham & Company LLC reduced their price target on shares of CoStar Group from $80.00 to $60.00 and set a “buy” rating on the stock in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, CoStar Group presently has an average rating of “Moderate Buy” and an average price target of $73.35.

CoStar Group Stock Up 0.5%

CSGP stock opened at $45.00 on Wednesday. The company has a current ratio of 2.84, a quick ratio of 3.12 and a debt-to-equity ratio of 0.12. The company’s 50-day moving average price is $58.83 and its 200 day moving average price is $71.26. CoStar Group has a 52 week low of $43.17 and a 52 week high of $97.43. The company has a market cap of $19.07 billion, a P/E ratio of 4,504.50, a P/E/G ratio of 1.18 and a beta of 0.84.

CoStar Group (NASDAQ:CSGP) last posted its quarterly earnings results on Tuesday, February 24th. The technology company reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.04. The company had revenue of $900.00 million during the quarter, compared to the consensus estimate of $892.22 million. CoStar Group had a net margin of 0.23% and a return on equity of 2.53%. The company’s revenue for the quarter was up 26.9% on a year-over-year basis. During the same period last year, the firm earned $0.26 EPS. CoStar Group has set its Q1 2026 guidance at 0.160-0.190 EPS. On average, research analysts expect that CoStar Group will post 0.94 earnings per share for the current fiscal year.

CoStar Group declared that its board has initiated a share buyback plan on Wednesday, January 7th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the technology company to purchase up to 5.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On CoStar Group

A number of institutional investors have recently modified their holdings of CSGP. Quent Capital LLC purchased a new stake in CoStar Group in the 3rd quarter worth approximately $26,000. Rossby Financial LCC lifted its stake in shares of CoStar Group by 315.9% during the 2nd quarter. Rossby Financial LCC now owns 341 shares of the technology company’s stock worth $27,000 after purchasing an additional 259 shares during the period. Manning & Napier Advisors LLC acquired a new stake in shares of CoStar Group during the third quarter worth $28,000. Lloyd Advisory Services LLC. purchased a new stake in shares of CoStar Group in the fourth quarter valued at $29,000. Finally, Westside Investment Management Inc. increased its stake in CoStar Group by 100.0% in the third quarter. Westside Investment Management Inc. now owns 360 shares of the technology company’s stock valued at $30,000 after purchasing an additional 180 shares during the last quarter. Institutional investors and hedge funds own 96.60% of the company’s stock.

Key Stories Impacting CoStar Group

Here are the key news stories impacting CoStar Group this week:

• Positive Sentiment: Q4 results and commentary: CoStar reported Q4 EPS of $0.31 (above the $0.27 consensus) and revenue of $900M (above estimates), with revenue up ~27% year‑over‑year and management highlighting strong bookings and digitization progress. This beat helped justify upside expectations for growth. Read More.
• Positive Sentiment: FY‑2026 guidance raised on headline figures: CoStar published FY‑2026 EPS guidance of $1.220–$1.330 and revenue guidance around $3.8B — both cited as above consensus in one release — which supports a constructive longer‑term revenue/margin trajectory if achieved. (Guidance entry provided by company filings/press materials.)
• Positive Sentiment: Data product traction: CoStar research showed meaningful market activity (e.g., London office yield compression in 2025), reinforcing the value of CoStar’s data/analytics franchises and monetization opportunities. Read More.
• Neutral Sentiment: Industry signals: Apartments.com released February rent data showing modest U.S. rent growth — useful macro context for CofStar’s marketplaces but not a direct catalyst. Read More.
• Neutral Sentiment: Short‑interest item looks unreliable: recent short‑interest lines in the feed show zero or NaN values and don’t present a clear short‑squeeze thesis at this time.
• Negative Sentiment: Analyst revisions and target cuts: Multiple firms trimmed price targets after the print (examples include BMO to $53 (market perform), RBC to $57 (sector perform), Wells Fargo to $44 (underweight), Needham to $60 (buy) and Goldman cut its target to $73 while keeping a buy). The wave of cuts and mixed ratings is pressuring sentiment despite the beat. Read More.
• Negative Sentiment: Shares dipped in some coverage despite the beat: several outlets noted the stock fell after the report even with double‑digit growth and a generally upbeat narrative, suggesting the market may be focused on margin/guidance nuance or valuation concerns. Read More.

CoStar Group Company Profile

CoStar Group, Inc is a provider of information, analytics and online marketplaces for the commercial real estate industry. The company gathers property-level data, builds market analytics and supplies research tools used by brokers, owners, lenders, investors and other real estate professionals to evaluate markets, track inventory and manage listings. CoStar’s offerings are delivered primarily through subscription-based platforms that combine proprietary databases, mapping and workflow applications to support decision-making across the property life cycle.

In addition to its core CoStar research service, the company operates prominent online listing and marketing platforms that connect buyers, sellers, tenants and brokers.