Needham & Company Reinstates CoStar Group (CSGP) at Buy

Needham & Company reinstates coverage on CoStar Group (NASDAQ: CSGP) with a Buy rating and a price target of $240.00.

Analyst Mayank Tandon commented, "We are reinstating coverage of CoStar with a BUY rating and a $240 target price. As the leading provider of critical information services for the commercial real estate and apartment markets with a multi-billion-dollar market opportunity, high barriers to entry, and potential for low double-digit organic revenue growth and sustained EBITDA margin expansion, we believe CoStar can support a premium valuation to its LT 20-25% EPS growth rate, particularly as it continues to strengthen its competitive position both through organic and inorganic means. We see the recent pull-back as an attractive opportunity for long-term focused growth-oriented portfolios to buy the shares. Our $240 target, which calls for about 15% upside, is based on roughly 45x our FY17 EPS estimate."

For an analyst ratings summary and ratings history on CoStar Group click here. For more ratings news on CoStar Group click here.

Shares of CoStar Group closed at $208.23 yesterday.

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