CoStar biggest beneficiary of NAR settlement, says Stephens

Stephens notes that the National Association of Realtors, or NAR, has reached a $418M legal settlement that could put an end to a multiyear legal battle that has been fought by the NAR along with several large U.S. brokerages. The firm, which believes the elimination of cooperative compensation was likely to come whether the NAR settled or stayed the course, so it sees this as “an in-line type of development,” adding that at “a high level” it sees CoStar Group (CSGP), the analyst’s 2024 Best Idea, as “the biggest beneficiary.” Zillow (ZG) is “likely to also benefit in time,” the analyst added in a “First Look” note as the news of the settlement broke. Stephens has Overweight ratings on Zillow and CoStar shares.