BMO Capital lowered the firm’s price target on CoStar Group (CSGP) to $72 from $77 and keeps a Market Perform rating on the shares. While 2026 revenue and adjusted EBITDA guidance incorporated consensus, adjusted EPS guidance was light due to below-the-line item guidance, the analyst tells investors in a research note. The negative stock reaction was likely due to the Homes.com profitability trajectory and perception that margins would contract in the non-Homes.com business, which management vehemently denied, BMO adds.
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