Jefferies Turns Bullish on CoStar Group (CSGP), Citing Strong EBITDA Growth Outlook

Core Insights - CoStar Group, Inc. (NASDAQ:CSGP) is recognized as one of the 14 best real estate stocks to buy according to hedge funds [1] - Jefferies upgraded CoStar to Buy from Hold, setting a new price target of $67, down from $84, citing a compelling entry point due to ongoing investor debate around Homes.com [2] - The company is expected to see strong long-term growth, with adjusted EBITDA projected to triple to $2.4 billion by 2030 and margins expanding to 36% [2] Industry Outlook - CoStar's forecast for the US retail market remains largely unchanged through 2026, with retail vacancy expected to rise slightly before declining later in the year and into 2027 [3] - Store closures are anticipated to increase in the first half of 2026, driven by uneven retail sales trends prompting some tenants to reduce their store footprint [4] - Full-year net absorption for retail space is projected to be just over 16 million square feet, marking the third weakest year for retail space demand in the past decade, only ahead of 2020 and 2025 [4] Company Overview - CoStar Group, Inc. is a global leader in commercial real estate information, analytics, and online marketplaces, focusing on digitizing real estate data to aid better property decisions [5]