Is Homes.com a Burden for Costar Group Inc (CSGP) Stock?

Costar Group Inc (NASDAQ:CSGP) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. The Street sees the stock gaining more than 50% over the next 12 months.

Is Homes.com a Burden for Costar Group Inc (CSGP) Stock?

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On April 29, Citizens reiterated a Market Outperform rating on CoStar stock but lowered its price target on the shares to $44 from $73. According to Citizens, CoStar’s portfolio of businesses is generally high quality, but the company needs to do something about its Homes.com brand.

Homes.com is the company’s residential real estate marketplace. At the end of Q1 2026, CoStar said Homes.com had 35,000 members, up 200% compared to the same period a year ago.

Citizens expects CoStar to rationalize its Homes.com brand. The firm believes that CoStar will reduce its investment in this business rather than increase it. Without the Homes.com business, the firm projects that CoStar can generate EBITDA of $1.35 billion in 2026.

Citizens noted CoStar’s continued commitment to its 2028 and 2030 financial goals. According to the firm, this provides a clear deadline for the company to make a decision on the Homes.com business. Citizens concluded that it wants to be positioned for when CoStar’s profitability improves, and it believes this could come suddenly.

Costar Group Inc (NASDAQ:CSGP) is a provider of information, analytics, and marketing services to the commercial real estate industry. The company is based in Arlington, Virginia, and serves customers across North America and Europe. Its brands include Apartments.com, Homes.com, LoopNet, and Matterport.

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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