CoStar Group price target lowered to $90 from $110 at JMP Securities

JMP Securities analyst Nicholas Jones lowered the firm’s price target on CoStar Group to $90 from $110 and keeps an Outperform rating on the shares. CoStar Group’s Q2 results were solid, with revenue finishing in line with consensus and adjusted EBITDA beating the Street, but full-year guidance was lowered on the top line due to a weaker outlook for Homes.com, while adjusted EBITDA guidance saw a slight increase, the analyst tells investors in a research note. The firm overall remains encouraged by CoStar’s core commercial business, which achieved 41% margins in Q2, providing the company the flexibility to continue investing in Homes.com as it refines its sales strategy going forward, though now assigns $0 value to the Residential business and values the company on its more-established and stable Commercial businesses.