CoStar Group, Inc. (CSGP) Price Target Slashed, But Analysts Still See Upside

CoStar Group, Inc. (NASDAQ:CSGP) is among the most promising growth stocks according to analysts. On January 12, Ryan Tomasello from Keefe Bruyette reduced the price target on CoStar Group, Inc. (NASDAQ:CSGP) to $75 from $100, while maintaining an ‘Outperform’ rating. As the analyst notes in a research note, the likelihood of activism may help maintain a floor in the stock price over the coming period.

This downward readjustment in target price follows the company’s preliminary 2026 guidance and medium-term targets, which the firm calls disappointing yet indicative of “consistent and strong earnings expansion” that could provide the foundation for a stock surge in the future. Additionally, Keefe, Bruyette highlighted the company’s ongoing 0.8x growth-adjusted multiple, which it believes is relatively cheap given its growth profile.

Recently, several analysts have revised their outlooks for CoStar Group, Inc. (NASDAQ:CSGP) negatively. On January 8, Wells Fargo trimmed the price target on the company to $55.00 from $60.00 and maintained an ‘Underweight’ rating on the stock. On the same day, BMO Capital also cut the price target on the company to $72.00 from $77.00, keeping the rating of ‘Market Perform’ unchanged.

CoStar Group, Inc. (NASDAQ:CSGP) is a Virginia-based provider of information, analytics, and online marketplace services. Founded in 1987, the company offers CoStar Property, CoStar Leasing, CoStar Owners, CoStar Markets, and CoStar Tenant, among others.

While we acknowledge the potential of CSGP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSGP and that has 100x upside potential, check out our report about this cheapest AI stock.

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