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Investing.com - BMO Capital has raised its price target on CoStar Group (NASDAQ:CSGP) to $89.00 from $82.00 while maintaining a Market Perform rating on the real estate data provider’s stock. The stock currently trades at $90.55, surpassing its previous 52-week high of $86.59. According to InvestingPro analysis, CoStar appears to be trading above its Fair Value, with 13 additional key insights available to subscribers.
The firm cited CoStar’s second-quarter 2025 results, which exceeded expectations with solid revenue growth of 11.28% over the last twelve months, though noted this was partially driven by expense timing rather than purely operational improvements. The company maintains a strong financial position with a current ratio of 6.01, indicating robust liquidity management.
BMO highlighted accelerating net new bookings activity across CoStar’s platforms, particularly in Apartments.com and Homes.com membership additions, while noting the latter’s growth was likely already factored into the stock’s recent performance.
The analyst report also pointed to solid bookings growth in CoStar’s Suite, LoopNet (NASDAQ:LOOP), and Other Marketplaces segments, showing broad strength across the company’s product portfolio.
CoStar has raised its 2025 guidance based on strength in Matterport (NASDAQ:MTTR) and Residential revenues along with effective cost management, though BMO noted that some consensus metrics like adjusted EPS and Adjusted EBITDA were already aligned with the new outlook.
In other recent news, CoStar Group’s second-quarter earnings report has drawn significant attention, leading to a series of analyst actions. The company reported earnings and revenue that exceeded expectations, driven by strong commercial real estate bookings and robust net new bookings, which increased by 65% quarter-over-quarter. Notably, CoStar’s core EBITDA margins reached 43%, showcasing the company’s operational efficiency. Following these results, Needham raised its price target for CoStar Group to $105, while Citi adjusted its target to $100, both maintaining a Buy rating. Goldman Sachs also reiterated its Buy rating, with a price target of $105, highlighting the company’s ability to surpass revenue, EBITDA margins, and earnings per share estimates. Additionally, CoStar Group raised its full-year guidance for both revenue and EBITDA margins. JMP Securities continued to support CoStar with a Market Outperform rating, citing the company’s healthy EBITDA margins. Furthermore, JPMorgan increased its price target to $101, reflecting a positive growth outlook after discussions with CoStar’s management.
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