CoStar Group Inc.: Initiating on a Leading Real Estate Services Provider

CoStar Group Inc. (CSGP) is the premier research database provider for the commercial real estate industry, in our view. We see increased demand for advertising in both Multifamily and LoopNet, as industry vacancy rates tick higher. The Residential segment is nearing an inflection point, with increased investment and accelerating user growth allowing monetization to begin in 2024. Robust historical performance throughout the business cycle underscores CSGP’s ability to navigate economic uncertainty.