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CSGP · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is CoStar Group Inc (CSGP) stock moving?
CoStar fell from $32.01 to $27.54 on Oct 28 (about -14%) on volume of 18.3M, roughly 2.5x its recent average, after the Q3 2026 report. Brokers responded with a wave of price target cuts: Goldman to $36, Deutsche Bank to $33, BTIG to $35, KBW to $29 (Nov 10), while JP Morgan kept Overweight at $44 and Wells Fargo kept Underweight at $26. The average of the cited targets is about $33, above the current $30.33 close, so the analyst view is split but the trend in estimates is down. The stock has recovered to about $31 but has slipped for three sessions and closed at $30.33 on Nov 10 on the lowest volume in the window (3.1M), which suggests fading buying interest. Positives are the $730M Vexcel acquisition, which adds aerial imagery and geospatial data, and steady Apartments.com multifamily forecasts. These are offset by the target cuts, the post-earnings drop, and the cash cost and integration risk of the deal, which still needs HSR clearance. No news in the window points to a fresh, company-specific positive catalyst.
News behind the analysis
- Keefe, Bruyette & Woods Adjusts Price Target on CoStar Group to $29 From $30KBW lowered its CoStar price target from $30 to $29 on Nov 10, following the Q3 2026 earnings reaction.
- Apartments.com Upgrades U.S. Multifamily Growth ForecastApartments.com, a CoStar brand, projects U.S. multifamily vacancy near 7.9% through 2026, easing to 7.5% by end-2027.
- Goldman Sachs Adjusts Price Target on CoStar GroupGoldman Sachs cut its CoStar price target from $40 to $36 on Oct 28, after the Q3 report.
- JP Morgan Maintains Overweight on CoStar Group, Lowers Price Target to $44JP Morgan kept its Overweight rating on CoStar but lowered its price target to $44 on Oct 28.
- Deutsche Bank Adjusts CoStar Group Price Target to $33Deutsche Bank lowered its CoStar price target from $35 to $33 on Oct 28 while maintaining a Buy rating.
- Wells Fargo Maintains Underweight on CoStar Group, Raises Price Target to $26Wells Fargo kept its Underweight rating on CoStar and raised its price target to $26 on Oct 28.
- BTIG Maintains Buy on CoStar Group, Lowers Price Target to $35BTIG kept its Buy rating on CoStar and lowered its price target to $35 on Oct 28.
- Analysts Adjust Price Targets on CoStar Group Following Q3 2026 EarningsSeveral brokers, including KBW, JPMorgan, Baird and Jefferies, adjusted CoStar price targets on Oct 28 after the Q3 2026 earnings call.
- CoStar Group 8-K: Agreement to Acquire Vexcel for $730 Million in CashOn Oct 27 CoStar signed a merger agreement to acquire Vexcel, an aerial imagery and geospatial data provider, for $730M in cash, subject to customary closing conditions including HSR clearance.
About CoStar Group Inc
CoStar Group, based in Arlington, Virginia, provides commercial real estate data and analytics and runs online property marketplaces such as Apartments.com, LoopNet and Homes.com. It is known for its large proprietary property database, built over decades, and for spending heavily to grow a residential listings business that competes with Zillow. It has also bought other businesses, including Australia's Domain and the new-home data provider Zonda.
How it makes money
Most of its revenue comes from subscriptions and advertising. Professionals pay subscriptions for the CoStar data and analytics product, which brings in about $344 million a quarter, roughly 36% of revenue. Landlords pay to advertise on Apartments.com, its multifamily rental site, which is one of its largest businesses. Sellers and brokers pay to list commercial properties on LoopNet (about $89 million a quarter). Smaller amounts come from Homes.com agent memberships, Domain in Australia, Zonda and other marketplaces. The company expects 2026 revenue of roughly $3.75–3.77 billion, about 16% higher than the year before.
What usually moves CSGP
- Spending on Homes.com and how much it costs to win share
- Profit margin growth and cost cuts
- Net new bookings and subscriber renewal rates
- Health of the commercial real estate and rental markets
- Acquisitions and share buybacks