CoStar Group: Strong FY25 Finish, Robust Bookings Growth, and Digitization Progress Support Buy Rating Despite Lowered $60 Target

Mayank Tandon, an analyst from Needham, maintained the Buy rating on CoStar Group. The associated price target was lowered to $60.00.

Mayank Tandon has given his Buy rating due to a combination of factors, including CoStar Group’s solid finish to FY25 and consistent execution. The company delivered fourth-quarter revenue and earnings that exceeded expectations, driven by broad-based growth and disciplined cost management, and reported $75 million in net new bookings, a 42% year-over-year increase, contributing to a record $308 million in FY25 bookings.

Tandon also points to management’s reaffirmed FY26 outlook, the launch of Homes AI showcased at Needham’s recent conference, and the simplification of segment reporting with clear revenue and EBITDA margin guidance for both Commercial and Residential units. He believes CoStar is successfully advancing its digitization strategy, sustaining robust double-digit growth while simultaneously enhancing profitability, which supports maintaining a Buy rating even as the target price is reduced to $60.

In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $73.00 price target.