The Goldman Sachs Group Lowers CoStar Group (NASDAQ:CSGP) Price Target to $54.00

Key Points

• The Goldman Sachs Group lowered its price target on CoStar Group from $63 to $54 while maintaining a buy rating, implying roughly a 56.8% upside from the current price.
• Analyst reactions are mixed—several brokers trimmed targets (e.g., Wells Fargo to $33, Needham to $50) though some kept higher objectives—leaving a consensus of Moderate Buy with an average price target of $58.59.
• On fundamentals, CoStar beat Q1 EPS estimates with about 23% revenue growth, raised adjusted-EBITDA guidance and authorized a $1.5 billion buyback, but investor concern over Homes.com spending and near-term margins has increased short-term volatility.

CoStar Group (NASDAQ:CSGP - Get Free Report) had its target price lowered by equities researchers at The Goldman Sachs Group from $63.00 to $54.00 in a research note issued on Thursday,Benzinga reports. The firm currently has a "buy" rating on the technology company's stock. The Goldman Sachs Group's price objective points to a potential upside of 56.82% from the stock's current price.

Other equities research analysts have also recently issued reports about the company. Wells Fargo & Company cut their price target on CoStar Group from $40.00 to $33.00 and set an "underweight" rating for the company in a research note on Thursday. Needham & Company LLC cut their price target on CoStar Group from $60.00 to $50.00 and set a "buy" rating for the company in a research note on Wednesday. Jefferies Financial Group raised shares of CoStar Group from a "hold" rating to a "buy" rating and set a $67.00 price objective for the company in a research report on Friday, February 20th. Robert W. Baird cut their price objective on shares of CoStar Group from $73.00 to $56.00 and set an "outperform" rating for the company in a research report on Monday, April 13th. Finally, Bank of America set a $74.00 price objective on shares of CoStar Group in a research report on Wednesday, January 7th. Twelve equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $58.59.

CoStar Group Stock Performance

Shares of NASDAQ:CSGP traded up $0.30 during trading on Thursday, reaching $34.44. 4,068,097 shares of the stock were exchanged, compared to its average volume of 6,816,839. CoStar Group has a 12 month low of $33.31 and a 12 month high of $97.43. The firm has a market cap of $14.46 billion, a PE ratio of 3,464.36, a PEG ratio of 0.94 and a beta of 0.92. The stock has a 50-day moving average price of $42.07 and a 200-day moving average price of $57.20. The company has a current ratio of 2.84, a quick ratio of 2.84 and a debt-to-equity ratio of 0.12.

CoStar Group (NASDAQ:CSGP - Get Free Report) last announced its earnings results on Tuesday, April 28th. The technology company reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.05. The company had revenue of $897.00 million during the quarter, compared to analysts' expectations of $897.69 million. CoStar Group had a net margin of 0.23% and a return on equity of 2.53%. CoStar Group's quarterly revenue was up 22.5% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.04) earnings per share. CoStar Group has set its Q2 2026 guidance at 0.270-0.300 EPS and its FY 2026 guidance at 1.320-1.390 EPS. Research analysts expect that CoStar Group will post 0.96 EPS for the current fiscal year.

CoStar Group declared that its board has approved a share repurchase program on Wednesday, January 7th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the technology company to reacquire up to 5.3% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Insider Activity at CoStar Group

In related news, Director Louise S. Sams bought 1,000 shares of the company's stock in a transaction dated Friday, March 6th. The stock was purchased at an average price of $48.36 per share, with a total value of $48,360.00. Following the completion of the acquisition, the director owned 20,409 shares of the company's stock, valued at $986,979.24. The trade was a 5.15% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.09% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CSGP. Norges Bank bought a new position in shares of CoStar Group in the 4th quarter valued at $476,765,000. Baillie Gifford & Co. lifted its stake in shares of CoStar Group by 56.9% in the 4th quarter. Baillie Gifford & Co. now owns 12,933,185 shares of the technology company's stock valued at $869,627,000 after acquiring an additional 4,691,543 shares during the last quarter. Capital International Investors raised its holdings in CoStar Group by 59.7% in the 4th quarter. Capital International Investors now owns 10,842,010 shares of the technology company's stock valued at $729,020,000 after buying an additional 4,053,456 shares during the last quarter. Viking Global Investors LP bought a new position in CoStar Group in the 2nd quarter valued at approximately $258,773,000. Finally, Goldman Sachs Group Inc. raised its holdings in CoStar Group by 70.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,751,312 shares of the technology company's stock valued at $252,238,000 after buying an additional 1,556,100 shares during the last quarter. 96.60% of the stock is currently owned by institutional investors.

Trending Headlines about CoStar Group

Here are the key news stories impacting CoStar Group this week:

• Positive Sentiment: Q1 results beat consensus on EPS and showed 23% revenue growth; adjusted EBITDA doubled year-over-year and management raised FY 2026 adjusted-EBITDA guidance to $780M–$820M (and provided Q2 and FY EPS guidance above prior consensus), supporting a more positive profitability trajectory. BusinessWire Q1 Release
• Positive Sentiment: Analysts and coverage note improving marketplace and AI-driven engagement (Homes.com traction, Apartments.com rent growth, steady office vacancy outlook) that support long-term revenue expansion and marketplace monetization. Earnings Highlights Office Vacancy Forecast
• Neutral Sentiment: Company published detailed earnings materials and the call transcript; multiple deep-dive pieces summarize management’s growth plans and AI integration but do not change near-term financials. Earnings Deck Deep Dive
• Negative Sentiment: Investor focus on Homes.com spending vs. near-term profitability and pre-earnings positioning triggered a pullback after results — even with guidance improvements, the market is cautious about margin timing. QuiverQuant Analysis
• Negative Sentiment: Several brokers lowered price targets this week (Wells Fargo cut to $33 with an Underweight; others trimmed targets though some kept Buy/Outperform ratings), increasing headline risk and contributing to short-term volatility. Analyst Moves (Benzinga)

About CoStar Group

CoStar Group, Inc is a provider of information, analytics and online marketplaces for the commercial real estate industry. The company gathers property-level data, builds market analytics and supplies research tools used by brokers, owners, lenders, investors and other real estate professionals to evaluate markets, track inventory and manage listings. CoStar's offerings are delivered primarily through subscription-based platforms that combine proprietary databases, mapping and workflow applications to support decision-making across the property life cycle.

In addition to its core CoStar research service, the company operates prominent online listing and marketing platforms that connect buyers, sellers, tenants and brokers.

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