CoStar Group (NASDAQ:CSGP) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 27, Jake Fuller from BTIG upgraded his rating on CoStar Group (NASDAQ:CSGP) from Neutral to Buy. He forecasted a target price of $80 for the stock, which yields almost 57% upside potential from the current level.
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Fuller based his upgraded stance on the company’s growth in its sales force. In his view, it has proven to be a major catalyst driving bookings acceleration and the resulting double-digit organic growth.
On January 8, Faiza Alwy from Deutsche Bank also maintained a Buy rating on CoStar Group (NASDAQ:CSGP). She reduced her price target on the stock from $85 to $68, which still offers an upside potential of over 33%.
Alwy noted that negative market sentiment was fueled by the company’s revised 2026 and medium-term outlook, which included a fresh $1.5 billion share buyback authorization. Amid fixed costs related to shared resources, the outlook suggests commercial margins are expected to decline by 4%.
CoStar Group (NASDAQ:CSGP) provides commercial real estate analytics and online marketplaces. It operates various platforms such as CoStar Property, CoStar Markets, CoStar Leasing, CoStar Sales, Home.com, and LoopNet. Through these platforms, it delivers services around unique property types, including office, industrial, retail, multifamily, hospitality, and student housing.
While we acknowledge the potential of CSGP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
