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ARLINGTON, Va. - CoStar Group , Inc. (NASDAQ: NASDAQ:CSGP), a key player in online real estate marketplaces, information, and analytics, has announced the acquisition of Ag-Analytics, an agricultural data firm. This move aims to enhance CoStar's Land.com platform by integrating Ag-Analytics’ AcreValue platform, which offers detailed data on agricultural land, into Land.com's listings.
The AcreValue platform provides insights on land value, soil composition, and other geographical data, serving various land market segments including farmers, landowners, and professionals. It currently covers 48 contiguous states and is recognized as a leading solution for farmland and non-residential land analytics in the U.S. With an impressive gross profit margin of 79.23% and revenue growth of 11.67% in the last twelve months, CoStar demonstrates strong operational efficiency in its existing business lines.
With this acquisition, Land.com will offer AcreValue's analytics and reports for its rural real estate listings, catering to its 1.5 million registered users and presenting data on millions of land parcels. This is expected to provide clients with greater exposure and deeper insights into the properties.
Ag-Analytics, founded in 2018 and based in Ithaca, New York, also has a strategic alliance with Farmer Mac, a key player in the agricultural credit market. Farmer Mac utilizes the AcreValue platform to enhance lending opportunities and market efficiency.
CoStar Group CEO Andy Florance highlighted the significant market potential in the farm sector real estate, valued at $3.4 trillion. He anticipates that the integration of Ag-Analytics will create new opportunities for revenue maximization and value for CoStar's clients.
Joshua Woodard, Founder of Ag-Analytics, expressed enthusiasm about joining CoStar and the potential for AcreValue and Land.com to deliver valuable insights and innovative solutions to the land market.
This development is part of CoStar Group's ongoing commitment to digitizing real estate and providing comprehensive market intelligence through its various brands, which include CoStar, LoopNet (NASDAQ:LOOP), Apartments.com, Homes.com, STR, Ten-X, and OnTheMarket.
The acquisition is based on a press release statement and represents CoStar Group's strategy to expand its analytics capabilities into the agricultural land sector.
In other recent news, CoStar Group has been the subject of analyst attention. Keefe, Bruyette & Woods analyst Ryan Tomasello has adjusted the price target for the company, reducing it from $96 to $93, while maintaining an Outperform rating. This adjustment is based on a more conservative view of CoStar Group's revenue growth, influenced by recent bookings. Tomasello suggests that despite the cautious near-term outlook, CoStar Group's prospects for 2025 remain promising, with potential for double-digit organic revenue growth.
On the other hand, Needham has reiterated a Buy rating for CoStar Group, maintaining a $100 price target. The firm's optimism is based on a strategic shift in sales and a more favorable commercial real estate market environment. Needham anticipates that these changes, along with steady investments in Homes.com, will contribute to an acceleration in CoStar's revenue growth.
These developments indicate that analysts remain confident in CoStar Group's long-term prospects, despite some near-term caution. They believe that the company is well-positioned to capitalize on current market conditions and its strategic initiatives.
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