CoStar Group price target lowered to $73 from $78 at Citizens

Citizens lowered the firm’s price target on CoStar Group (CSGP) to $73 from $78 and keeps an Outperform rating on the shares. CoStar reported better-than-expected results with revenue and EBITDA coming in above the high end of guidance by 1% and 8%, respectively, though Q1 EBITDA guidance came in below consensus estimates, the analyst tells investors in a research note. CoStar’s high-quality commercial business continues to expand internationally and across verticals, a strength viewed as outweighing the ongoing investment in Homes.com, which carries an uncertain path to profitability and reduced disclosure transparency, the firm says, adding that with activist pressure increasing, investors appear positioned for a potential win/win scenario: either operational performance improves, or activists push for strategic changes, including a possible closure of Homes.com.