CoStar Group price target lowered to $80 from $95 at Needham

Needham analyst Mayank Tandon lowered the firm’s price target on CoStar Group to $80 from $95 and keeps a Buy rating on the shares. The company’s Q4 results topped expectations thanks to "broad-based strength" across all the segments, the analyst tells investors in a research note. The firm also noted however that CoStar management provided a "disappointing" Q1 guidance that calls for a significant reduction in profitability as the company invests for long-term growth, specifically in the Residential business. Longer term, Needham is positive on CoStar given its strong competitive position, "rock-solid" balance sheet, and proven track record of generating solid organic growth while supplementing it with accretive M&A.