BofA Resumes Coverage of CoStar Group (CSGP) Stock with Neutral Rating

On May 30, BofA Securities resumed coverage on CoStar Group, Inc. (NASDAQ:CSGP)’s stock with a “Neutral” rating and a price objective of $79.00. The analyst lauded the company’s position as a leading information service provider in the commercial real estate sector and its market footing as the operator of the largest US listings platform for residential rentals.

An elegant residential building set against the modern skyline.

As per the analyst, profitable scaling of the residential segment offers a challenge and is regarded as the critical risk to CoStar Group, Inc. (NASDAQ:CSGP)’s otherwise healthy growth trajectory.

Notably, CoStar Group, Inc. (NASDAQ:CSGP) continues to navigate the complexities of expanding its residential real estate portfolio while, at the same time, maintaining growth and profitability. The company’s net new bookings came in at $56 million in Q1 2025, reflecting a rise of 6% sequentially. Its international businesses achieved 3 consecutive quarters of all-time net new bookings, reaching more than $5 million ARR in Q1 2025, implying 56% YoY growth.

For FY 2025, CoStar Group, Inc. (NASDAQ:CSGP) expects revenue in the range of $3.115 billion – $3.155 billion, reflecting an annual growth rate of 14% – 15%. This forecast remains broadly in line with the company’s original 2025 guidance and includes a 4 – 5 percentage point contribution due to the Matterport acquisition. Furthermore, Q2 2025 revenue is projected between $770 million – $775 million, reflecting YoY growth of 14% at the midpoint.

CoStar Group, Inc. (NASDAQ:CSGP) offers information, analytics, and online marketplace services.

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Disclosure: None.