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Investing.com - Citi has raised its price target on CoStar Group (NASDAQ:CSGP) to $100.00 from $91.00 while maintaining a Buy rating on the stock. The real estate technology company, with a market capitalization of $37.42 billion, is currently trading near its 52-week high with a P/E ratio of 296.56. According to InvestingPro analysis, the stock is trading above its Fair Value.
The firm cited CoStar’s second-quarter commercial real estate (CRE) bookings of $79 million, representing a 55% year-over-year increase, as a significant factor improving the company’s market narrative.
Citi noted that Apartment bookings reached all-time highs, while LoopNet (NASDAQ:LOOP) is beginning to gain new momentum after years of inconsistent performance. Suite bookings continue to trend upward, benefiting from a return of CRE transaction activity and increased salesforce capacity.
The research firm also highlighted that Homes.com turned positive on bookings with 6,300 new members, though new pricing appears significantly lower than initial expectations. CoStar sees opportunities to improve revenue through its Boost feature and plans to launch a new construction segment with large-scale homebuilders next month.
Citi’s price target increase reflects growing confidence in continued CRE EBITDA margin expansion and an updated sum-of-the-parts valuation rolled forward to fiscal year 2026.
In other recent news, CoStar Group reported second-quarter revenue of $781 million, surpassing analyst estimates of $772.19 million and marking a 15% increase from the previous year. The company’s adjusted earnings per share were $0.17, exceeding the consensus estimate of $0.14. Following these strong results, CoStar Group raised its full-year guidance for both revenue and EBITDA margins, signaling confidence in its ongoing performance. Analysts have responded positively, with Needham raising its price target to $105 while maintaining a Buy rating, and Goldman Sachs also reiterating a Buy rating with the same price target. JPMorgan increased its price target to $101 from $87, citing a favorable growth outlook after discussions with the company’s management. JMP Securities maintained its Market Outperform rating, emphasizing the company’s stable EBITDA margins of 43%. These developments reflect the company’s solid financial health and growth potential, as evidenced by record net new bookings and robust core business profitability.
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