RBC Raises Price Target on CoStar Group to $34 From $31, Keeps Sector Perform Rating

CoStar (CSGP) reported Q2 revenue of $925M, up 18.4% YoY, with guidance missing expectations. Fair Isaac (FICO) reported $674.2M, up 25.7%, missing estimates. TransUnion (TRU) reported $1.31B, up 14.9%, beating expectations. CSGP is up 6.4%, FICO down 19.7%, TRU up 8.3% since reporting.

CoStar completed an $800m acquisition of Zonda, expanding into residential construction data. Zillow's Zestimate has median error rates of 1.8% for listed homes and 7.2% for off-market homes. Zillow faced a $881m pre-tax loss in its Homes division and an FTC settlement over a deal with Redfin. NAR settled litigation and amended MLS rules, but data access remains contested. Tech giants plan significant data center investments, with location priorities shifting.

CoStar Group completed an $800M cash acquisition of Zonda, expanding into new-home data. Zonda, with $170M in 2025 revenue, provides data to 3,000+ builders and developers. The deal follows CoStar's strong Q2 2026 results, with revenue up 18% YoY to $925M and residential revenue up 33%. CoStar aims to integrate Zonda's data and builder network with its existing platforms.

CoStar (CSGP) reported Q2 revenue of $925M, up 18.4% YoY, meeting expectations but delivering the weakest guidance among peers. EXL (EXLS) outperformed with $594.8M revenue, up 15.6% YoY, and raised full-year guidance. Equifax (EFX) and TransUnion (TRU) also reported, with TRU raising guidance. The sector saw mixed results, with revenues 1% above consensus but next quarter's guidance 1.3% below. Stocks are up 7.8% on average since earnings.

CoStar Group completed its $800M acquisition of Zonda, adding new-home data and software. Zonda generated $170M in 2025 revenue with a 23% adjusted EBITDA margin. CoStar aims to integrate Zonda's offerings with its existing property data services, targeting the $400B US new-home market.

CoStar Group completed an $800M cash acquisition of Zonda, adding new-home data, analytics, software, and marketplaces. The deal includes NewHomeSource.com and Livabl, expanding CoStar's residential segment. Zonda reported $170M revenue in 2025 with a 23% Adjusted EBITDA margin, serving over 3,000 customers. The acquisition is expected to boost profitability and market reach.