William Blair analyst Stephen Sheldon has reiterated their bullish stance on CSGP stock, giving a Buy rating on September 22.
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Stephen Sheldon has given his Buy rating due to a combination of factors surrounding CoStar Group’s strategic investments and operational progress. A significant factor is CoStar’s substantial investment in Homes.com, which, despite being a short-term financial burden, is showing promising signs of growth. The company has successfully increased its membership base, with a notable rise in member additions in the second and third quarters, indicating that their business model is gaining traction.
Moreover, the negative sentiment from investors regarding the high spending on Homes.com is beginning to ease as the company demonstrates potential for future profitability. The increase in net new bookings and the possibility of reducing expenditures in areas like marketing and content provide a clearer path to breakeven. This progress, along with the competitive positioning of Homes.com against major players like Zillow, supports Sheldon’s optimistic outlook for CoStar’s future performance.
In another report released on September 22, Goldman Sachs also reiterated a Buy rating on the stock with a $105.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CSGP in relation to earlier this year.