CoStar Group price target lowered to $86 from $90 at Stephens

Stephens analyst John Campbell lowered the firm’s price target on CoStar Group to $86 from $90 and keeps an Overweight rating on the shares on lower estimates after the company’s 2023 profit guidance was "well-below" consensus due to expectations for a material step up in resi-related investment spend. While this "likely punishes the stock," the firm is "not worried" given that the spend range is "likely overdone" and this "sets up another beat/raise year. In addition, the firm is not sure CoStar even has to organically build out the traffic with Realtor.com potentially being back in play on better terms and Stephens notes momentum is continuing to build across the core non-resi business.