Group 1 - CoStar Group (NASDAQ:CSGP) is recognized as one of the top 10 real estate services stocks to buy according to hedge funds [1] - Jake Fuller from BTIG upgraded CoStar Group's rating from Neutral to Buy, with a target price of $80, indicating a potential upside of nearly 57% [1] - Faiza Alwy from Deutsche Bank maintained a Buy rating on CoStar Group, lowering her price target from $85 to $68, which still suggests an upside potential of over 33% [3] Group 2 - Alwy highlighted that negative market sentiment was driven by the company's revised outlook for 2026, which included a new $1.5 billion share buyback authorization [4] - The outlook indicates a projected decline of 4% in commercial margins due to fixed costs associated with shared resources [4] - CoStar Group provides commercial real estate analytics and operates various platforms, including CoStar Property, CoStar Markets, and LoopNet, serving multiple property types [5]

Core Viewpoint - CoStar Group, Inc. (NASDAQ:CSGP) is viewed as a promising growth stock despite recent downward adjustments in price targets by analysts, indicating potential for future stock price stability due to activism [1][2]. Group 1: Analyst Ratings and Price Targets - Ryan Tomasello from Keefe Bruyette reduced the price target for CoStar Group to $75 from $100 while maintaining an 'Outperform' rating, suggesting that activism may support the stock price [1]. - Wells Fargo lowered its price target to $55 from $60, maintaining an 'Underweight' rating, while BMO Capital cut its target to $72 from $77, keeping a 'Market Perform' rating [3]. Group 2: Company Performance and Outlook - The company's preliminary 2026 guidance and medium-term targets were described as disappointing but indicative of "consistent and strong earnings expansion," which could lead to a stock surge in the future [2]. - CoStar Group operates as a provider of information, analytics, and online marketplace services, with various offerings including CoStar Property, CoStar Leasing, CoStar Owners, CoStar Markets, and CoStar Tenant [4]. Group 3: Valuation Metrics - Keefe Bruyette highlighted CoStar's ongoing 0.8x growth-adjusted multiple, which is considered relatively cheap given its growth profile, suggesting potential undervaluation [2].