Goldman Sachs Reiterates Buy On CoStar, Price Target At $105

Core Viewpoint - Goldman Sachs maintains a Buy rating and a $105 price target on CoStar Group, emphasizing the growth potential in the U.S. residential real estate market [1] Group 1: Market Potential - CoStar identifies inefficiencies in current real estate portals, which prioritize lead generation over property marketing [1] - The estimated total addressable market for U.S. residential real estate is $3 billion, with potential EBITDA of $1.5 billion, significantly larger than Apartments.com [1] Group 2: Business Performance - Residential bookings have remained robust, with 2,000 to 2,500 new memberships added monthly since April [2] - CoStar anticipates residential spending to reach approximately $900 million this year [2] Group 3: Expansion Strategy - CoStar is pursuing international expansion through the acquisition of Domain in Australia and investment in OnTheMarket in the UK [2] - CoStar Suite and Apartments.com continue to perform well despite challenges in the commercial real estate sector [2]