On July 14, CoStar Group fell 6.6% in regular trading, trading at $27.06 USD/share, with turnover of $82.19 million. The decline was triggered by RBC Capital Markets cutting its price target on the stock to $34 from $39 while maintaining a Sector Perform rating.

In a research report published on July 13, RBC warned that CoStar is likely to post lower-than-expected Q2 net new bookings due to challenging year-over-year comparisons and headwinds from elevated interest rates amid a macroeconomic slump. RBC expects Q2 net new bookings of approximately $82 million, implying roughly 22% sequential growth. The brokerage forecasts Q2 EPS of $0.30 on revenue of $931 million, broadly in line with FactSet consensus of $0.29 and $928.8 million respectively. CoStar is scheduled to report Q2 results on July 28.

Notably, RBC had previously cut its CoStar target from $57 to $39 in early May, and Wells Fargo also lowered its target to $26 with an Underweight rating in late June, reflecting a broader pattern of analyst caution on the stock amid persistent macro headwinds.

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