Balanced Risk/Reward and Reduced Valuation Drive Hold Rating on CoStar Shares

BTIG analyst Jake Fuller has maintained their neutral stance on CSGP stock, giving a Hold rating yesterday.

Jake Fuller has given his Hold rating due to a combination of factors that leave the risk/reward profile balanced rather than compelling. Management’s long-term guidance implied that either margins or growth in the core commercial real estate segment would be weaker than what the market had been expecting, and the lack of detailed visibility on revenue drivers limits confidence in the outlook. At the same time, updated guidance drove Street EBITDA estimates lower for 2027–2028, even though Fuller’s own numbers for 2026 moved up modestly after he adjusted operating expense assumptions to match the new targets.

Fuller also highlights that the strategy for Homes.com is more reliant on ambitious revenue growth than on a sharp pullback in spending, which is controversial given broad investor skepticism about CoStar’s ability to seriously challenge Zillow. While the stock’s valuation multiple has compressed meaningfully in recent months, his sum‑of‑the‑parts analysis now supports a fair value range of $55–$70 per share, well below his prior estimate. That lower target range reflects both a reduced multiple for the CRE business and a cut to the assumed value of the residential operation after stripping out upside from Homes.com. Together, these elements lead Fuller to view the shares as fairly valued at current levels, justifying a Hold rating rather than a more positive stance.

In another report released yesterday, BMO Capital also maintained a Hold rating on the stock with a $72.00 price target.

CSGP’s price has also changed moderately for the past six months – from $82.830 to $61.360, which is a -25.92% drop .