BTIG maintains Buy rating on CoStar Group, $35 price target

What happened

BTIG kept its Buy rating on CoStar Group stock and a $35.00 price target. That target implies 9.3% upside from the October 27 close of $32.01.

Confirmed

Global impact / market context

A Buy rating with a higher target signals that at least one analyst expects CoStar shares to rise. The note points to cheap valuation and improving profits as reasons investors might hold the stock.

Analyst inference

CoStar is cutting its Homes.com salesforce and refocusing on its core commercial real estate business. BTIG sees this shift lifting profitability and supporting revenue growth, which could make the stock more attractive to investors.

Analyst inference

What to watch

1. BTIG cites a valuation of about 11 times 2027 EBITDA, which is earnings before interest, taxes, depreciation and amortization, dropping to roughly 8 times when Homes.com losses are excluded. Confirmed
2. Watch whether the smaller Homes.com salesforce actually improves profitability and whether CoStar keeps posting mid-single-digit organic growth, since both underpin BTIG's Buy case. Analyst inference
3. Investors could track whether CoStar's shares approach the $35.00 target and whether other analysts change their ratings or price targets after this note. Proposed

Evidence

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