Benchmark Initiates CoStar (CSGP) With Buy Rating Following Zonda Acquisition

CoStar Group Inc. (NASDAQ:CSGP) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 4, Benchmark began coverage of CoStar Group Inc. (NASDAQ:CSGP) with a Buy rating and a $45 price target. According to analyst Michael Rindos, the stock had plummeted by roughly 50% year-to-date due to worries about the sluggish housing economy, aggressive expenditure at Homes.com, and buzz from activist investors.

The firm thinks the stock has reached its lowest point and is ready to climb again. In the second half of 2026, the residential segment’s AEBITDA is predicted to turn upbeat, while margins are anticipated to grow into 2027.

Additionally, on May 29, CoStar Group Inc. (NASDAQ:CSGP) announced that it had reached an agreement to pay $800 million in cash for Zonda, a supplier of homebuilder software and new house development data.

The deal comprises NewHomeSource and Livabl, two online new house marketplaces in the US and Canada. These platforms display listings from residential builders and offer floor plans, virtual tours, prices, and community information for newly built properties.

CoStar Group Inc. (NASDAQ:CSGP) provides online real estate marketplaces, information, and analytics for the commercial and residential property markets.

While we acknowledge the risk and potential of CSGP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSGP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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