5 Best PropTech Stocks to Buy According to Hedge Funds

4. CoStar Group Inc. (NASDAQ:CSGP)

CoStar Group Inc. (NASDAQ:CSGP) is one of the 7 best PropTech stocks to buy according to hedge funds.

On February 26, BITG reiterated a Buy rating for CoStar Group Inc. (NASDAQ:CSGP) after the announcement of its fourth quarter results. The firm reduced the company’s price target from $80 to $60. Since the announcement of its third-quarter results, the sentiment around the stock has remained volatile.

It started with concerns around missing targets for bookings during the quarter. What also worried the investors was the medium-term outlook given by the company in January. BTIG believes that such a backdrop makes it harder for the company to achieve double-digit growth organically. It further noted that meager guidance for margins shared by the management fuels more fear regarding the company’s medium-term prospects.

On February 25, Alexei Gogolev from J.P. Morgan reduced the price target on CoStar Group Inc. (NASDAQ:CSGP) from $101 to $82 while maintaining an Overweight rating on the stock. The analyst noted that the company exhibited strong momentum across its core segments, along with better-than-expected results from the acquisition of new assets.

Gogolev, however, lowered his price target based on a more cautious view of the company’s medium-term prospects. He still sees CoStar as a viable option in the growing commercial real estate segment.

CoStar Group Inc. (NASDAQ:CSGP) provides commercial real estate analytics and online marketplaces. It operates various platforms such as CoStar Property, CoStar Markets, CoStar Leasing, CoStar Sales, Home.com, and LoopNet. Through these platforms, it delivers services around unique property types including office, industrial, retail, multifamily, hospitality, and student housing.