CoStar Group, Inc. (CSGP.O): Multiple Rebound Off-the-Table ’26; DG to Neutral TP $33

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CoStar Group, Inc. (CSGP.O): Multiple Rebound Off-the-Table ’26; DG to Neutral TP $33

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29 Jul 2026 07:03:46 ET │ 13 pages

CoStar Group, Inc. (CSGP.O)

Multiple Rebound Off-the-Table for ’26; DG to Neutral TP $33

CITI'S TAKE

CSGP’s ~70% YoY decline has been astonishing. Our reset Buy-thesis in April

incorrectly believed (i) CoStar’s amassing salesforce was on the cusp of a Neutral ↓ from Buy

productivity inflection and (ii) Apartments would begin showing signs of

Price (28 Jul 26 16:00) US$30.33reacceleration by now – both items, manifested by continued weak bookings

growth and the lowered revenue outlook (1st in our ~10yrs covering), now Target price US$33.00↓

solidifying that CoStar’s organic growth engine is stalled. The company notes it from US$70.00remains on track for its medium-term goals, offering the pathway is not linear.

We see rebounding FCF generation (>$1B in ’27) emerging as the floor narrative; Expected share price return 8.8%

while a pivot to field sales in Homes and competition shift in Apartments are Expected dividend yield 0.0%

potential momentum rebuilders, though near-term confidence is challenging. Expected total return 8.8%We acknowledge the thesis isn’t permanently broken amidst FCF support.

Though recognizing a multiple rebound is likely off the table for 2026, we Market Cap US$12,385M

downgrade to Neutral and lower our TP from $70 to $33.

Bookings Inflection fails to Materialize, Revenue Outlook Reduced — Net new

bookings of $69m, up 3% QoQ but down 26% YoY, was a notable disappointment. Price Performance

Homes.com was impacted from a deliberate 21% reduction in sales headcount with (RIC: CSGP.O, BB: CSGP US)

CoStar now pivoting to more field sales and Apartments continues to face persistent

competitive pricing pressure.