The provider of information, analytics and marketing services to the commercial real estate industry has a strong competitive position in an improving real estate market, analysts said.
"In our opinion, CoStar is an attractive investment as the commercial real estate market has steadily improved since the depth of the recession, and when combined with a strong competitive position, it provides consistent organic growth, consolidation opportunities, and margin expansion to drive earnings and cash flow growth above revenue growth," the firm said.
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Shares of CoStar closed up 0.03% to $159.09 on Friday.
Separately, TheStreet Ratings team rates COSTAR GROUP INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COSTAR GROUP INC (CSGP) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."