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Investing.com - JPMorgan raised its price target on CoStar Group (NASDAQ:CSGP) to $101.00 from $87.00 on Wednesday, while maintaining an Overweight rating on the real estate information provider’s stock. The company, currently valued at $35.9 billion, is trading near its 52-week high of $86.59, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The 16% increase in price target follows JPMorgan’s analysis of CoStar’s recent earnings report and subsequent conversations with the company’s management team.
JPMorgan noted that third-quarter 2025 net new bookings may be similar to those in the second quarter, which would indicate an even more pronounced year-over-year growth acceleration.
The firm believes this dynamic creates an attractive setup for CoStar Group’s 2026 revenue growth prospects, with analysts expressing increased optimism about the company’s revenue trajectory.
While CoStar management reiterated its forecast for residential spending, JPMorgan highlighted better-than-expected optimization efforts around RIF (reduction in force) and artificial intelligence use for content, which could potentially result in improved profitability for the group. The company maintains strong financial health with a current ratio of 6.01, indicating robust liquidity to support its operational initiatives.
In other recent news, CoStar Group reported its second-quarter revenue at $781 million, surpassing analyst estimates of $772.19 million. This marks a 15% increase from the $678 million reported in the same quarter the previous year. Despite the revenue beat, adjusted earnings per share were $0.17, slightly below the consensus estimate of $0.14. Investors reacted positively to the company’s announcement of raised full-year guidance and record bookings performance. These developments highlight CoStar Group’s strong revenue growth, even as earnings fell short of expectations.
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