CoStar Group Sales Team Growth Spurs 57% Upside Target, $1.5B Buyback
CoStar Group’s sales force expansion prompted BTIG’s upgrade to Buy with a $80 price target, implying 57% upside, citing bookings acceleration and double-digit organic growth. Deutsche Bank maintained its Buy rating while cutting its target to $68, noted a $1.5B buyback authorization and forecast a 4% drop in commercial margins.
1. Analyst Upgrade from BTIG
On January 27, BTIG analyst Jake Fuller upgraded CoStar Group’s rating from Neutral to Buy, setting a price target of $80 that implies nearly 57% upside. Fuller cited the company’s expanded sales force as a key driver behind accelerated bookings and sustained double-digit organic growth.
2. Deutsche Bank Maintains Buy, Cuts Target
Earlier on January 8, Deutsche Bank reaffirmed its Buy rating on CoStar Group but lowered the price target from $85 to $68, indicating roughly 33% upside. The firm pointed to revised 2026 guidance that factors in fixed costs related to shared resources, leading to a forecasted 4% decline in commercial margins.
3. Sales Force Expansion as Growth Catalyst
CoStar Group has been investing heavily in its sales organization, growing headcount to support its real estate data and online marketplaces. This investment has been credited with boosting bookings momentum across platforms such as CoStar Property, Market Analytics, and LoopNet.
4. $1.5B Buyback and Margin Outlook
The company authorized a new $1.5 billion share repurchase program to return capital to shareholders while navigating margin pressures. This buyback is intended to bolster investor confidence as commercial margins are expected to soften under the updated outlook.