CSGP: Cautious on 2Q as CSGP Laps a Tough Compare

研报英文原文证据摘录

CSGP: Cautious on 2Q as CSGP Laps a Tough Compare

ommercial and residential real residential real estate markets, causing

low-end of CSGP's historical average estate markets, driving strong growth further deceleration in CSGP's flagship

relative premium to the market. in CSGP's flagship CoStar suite and CoStar suite and marketplace portfolio.

• We are concerned about elevated marketplace portfolio. • In this scenario, we see CSGP's

residential spending amid still weak • In this scenario, we see a greater residential strategy being highly value-

organic traffic, while Zillow's entrenched likelihood of success for CSGP's destructive, having already spent billions

position in the residential for-sale residential strategy, as it benefits from a in 2024 and 2025.

market presents challenges. broader market recovery. • With weaker earnings growth, and a

• With stronger earnings growth, and a black mark on its otherwise successful

then unblemished M&A track record, we M&A track record, we assign a 6x

see potential for multiple expansion to multiple, resulting in a $16 downside

12x, resulting in a $35 upside scenario. scenario.

Upcoming Catalysts Company Description

• 2026 guidance updates CoStar Group (CSGP) is a leading provider of commercial real

• Messaging around continued heavy investment in Homes.com estate (CRE) data, analytics, and digital marketplace platforms,

without gaining meaningful traction serving a wide array of professionals in the real estate industry,

• Slower-than-expected commercial real estate market recovery including brokers, property managers, owners, investors, and

• Ongoing regulatory and legal challenges related to real estate government agencies. Since its founding in 1987, CSGP has grown