Benchmark initiated coverage of CoStar Group with a Buy rating and a $45 price target on June 4. Analyst Michael Rindos noted the stock had fallen roughly 50% year-to-date due to concerns over the sluggish housing economy, aggressive spending at Homes.com, and activist investor buzz. The firm believes the stock has bottomed and is poised to recover, with the residential segment's adjusted EBITDA expected to turn positive in the second half of 2026 and margins expanding into 2027. Separately, on May 29, CoStar announced an agreement to acquire Zonda, a provider of homebuilder software and new home development data, for $800 million in cash. The deal includes two online new home marketplaces, NewHomeSource and Livabl, which display listings from residential builders in the US and Canada.
CoStar Group IncBenchmark initiates with Buy rating and $45 price target, citing stock bottom and recovery potential.