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

Vardah Gill

Sat, February 21, 2026 at 11:16 PM GMT+9 2 min read

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CoStar Group, Inc. (NASDAQ:CSGP) is included among the 14 Best Real Estate Stocks to Buy According to Hedge Funds.

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

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On February 20, Jefferies upgraded CoStar Group, Inc. (NASDAQ:CSGP) to Buy from Hold. It set a new price target of $67, down from $84. The firm said ongoing investor debate around Homes.com has created what it sees as a compelling entry point for the stock. The analyst also noted that the presence of activists “simply heightens” CoStar’s focus, suggesting increased pressure could help drive execution. Jefferies pointed out that the stock has largely moved sideways over the past five years, as the company went through its biggest investment phase to build out a new business. Looking ahead, the firm expects strong long-term growth, projecting that CoStar’s adjusted EBITDA could triple to $2.4B by 2030, with margins expanding to 36%.

On February 18, CoStar also released a new forecast showing that its outlook for the US retail market remains largely unchanged through 2026. The company said retail vacancy, which was previously expected to peak just below 4.4%, is still projected to rise slightly in early 2026 before gradually declining later in the year and into 2027.

At the same time, store closures, while slowing overall, are still expected to increase in the first half of 2026. The company noted that uneven retail sales trends are pushing some tenants to reduce their store footprint. Full-year net absorption is projected to come in at just over 16 million square feet, which would mark the third weakest year for retail space demand in the past decade, ahead of only 2020 and 2025.

CoStar Group, Inc. (NASDAQ:CSGP) is a global leader in commercial real estate information, analytics, and online marketplaces. Founded in 1986, the company focuses on digitizing real estate data and providing tools that help businesses and individuals make better property decisions.

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