CoStar Group downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded CoStar Group (CSGP) to Sector Perform from Outperform with a price target of $83, down from $96. The company’s core bookings declined 34% year-over-year and Homes.com bookings moderated to $1M in Q3 from $55M in the first half of 2204 despite the elevated investments, the analyst tells investors in a research note. The firm says that although CoStar’s core salesforce transitioning back should help, higher for longer interest rates could likely continue to weigh on the demand environment. A such, it believes the company’s ex-residential organic revenue growth could potentially moderate further in fiscal 2025.