Bill Gross warns on gold momentum as regional bank stocks tumble
Investing.com - Goldman Sachs has reiterated its Buy rating and $105.00 price target on CoStar Group (NASDAQ:CSGP), representing a 20% upside from the current price of $87.10, following strong traffic growth on its residential platform. The company, with a market capitalization of $36.9B, has demonstrated robust momentum with a 21.67% year-to-date return.
The firm noted that online traffic at CoStar’s residential site, Homes.com, accelerated in recent months, reaching a new one-year high with positive implications for residential revenue growth. Monthly unique visitors grew 3% year-over-year in July and 9% in August, improving from an average decline of 20% in the first quarter and 5% in the second quarter. According to InvestingPro data, analysts expect continued sales growth this year, supporting the company’s expansion trajectory.
August unique visitors reached 38 million, a level not seen since February 2024 when Homes.com first began its monetization efforts. This represents the highest traffic in a one-year period.
Goldman Sachs also highlighted that CoStar’s Apartments.com network delivered better year-over-year performance than Zillow Rentals in June, July, and August, suggesting better competitive positioning and accelerating organic revenue growth in the second half relative to the first half of 2025.
The firm sees healthy upside potential in CoStar shares from positive traction with Homes.com membership growth, helped by management’s recent actions to base pricing on agents’ listing volumes, acceleration in Apartments.com revenue growth, and EBITDA margin expansion from operating leverage. InvestingPro analysis reveals 12 additional key insights about CoStar’s financial health and growth prospects, available exclusively to subscribers.
In other recent news, CoStar Group reported a strong performance in its second-quarter 2025 earnings, with revenue increasing by 15% year-over-year to $781 million. The company also achieved record net new bookings of $93 million, representing a 65% sequential rise. Additionally, CoStar Group completed its acquisition of Domain Holdings Australia Limited, enhancing its presence in the Australian property market. The acquisition is expected to combine CoStar’s global reach with Domain’s local expertise, reaching approximately 7 million Australians monthly.
Goldman Sachs has reiterated its Buy rating on CoStar Group stock, with a price target of $105, citing strong growth in the company’s residential business. The firm highlighted CoStar’s view of the residential market as an attractive opportunity due to inefficiencies in the U.S. portal market. Wolfe Research also initiated coverage on CoStar Group with an Outperform rating and a $105 price target. The research firm pointed to potential investment returns from Homes.com and continued strength in Apartments.com as factors supporting its positive outlook. These developments reflect the company’s strategic moves and analyst confidence in its growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.