Market Overview

UPDATE: Morgan Stanley Downgrades CoStar Group to Underweight; Valuation Full

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Morgan Stanley reduced its rating on CoStar Group (NASDAQ: CSGP) from Equal-weight to Underweight and established a new price target of $73.

Morgan Stanley commented, "With the catalyst of the LoopNet merger behind, uncertainty about integration and rev synergies ahead, and the stock pricing in a very bullish scenario, we move to UW. We believe the stock price currently reflects the company's long-term goals of $500M run-rate revenue by the end of 2014 and adjusted EBITDA margins in the low- to mid-thirties, leaving little room for upside from these levels, and is not discounting the risk that the company may not achieve them."

CoStar Group closed at $83.24 on Wednesday.

Latest Ratings for CSGP

Aug 2014Goldman SachsInitiates Coverage onBuy
Jun 2014JMP SecuritiesUpgradesMarket PerformMarket Outperform
Jun 2014Bank of AmericaInitiates Coverage onBuy

View More Analyst Ratings for CSGP
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings


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