CSGP

CoStar Group Inc

TMT, Finance/Real Estate


Presented:11/09/2016
Price:$18.37
Cap:$5.96B
Current Price:$78.22
Cap:$32.06B

Presented

Date11/09/2016
Price$18.37
Market Cap$5.96B
Ent Value$6.97B
P/E Ratio75.58x
Book Value$5.00
Div Yield0%
Shares O/S324.40M
Ave Daily Vol1,817,470
Short Int2.84%

Current

Price$78.22
Market Cap$32.06B
CoStar Group, Inc. provides information, analytics and marketing services to the commercial real estate industry. Its integrated suite of online service offerings includes information about space available for lease, comparable sales information, tenant information, information about properties for sale, internet marketing services, analytical capabilities, information for client's websites, information about industry professionals and their business relationships, data integration and industry news. The company was founded by Andrew C. Florance and Michael R. Klein in 1987 and is headquartered in Washington, DC.

Please note, this stock split on 06/28/2021 at a ratio of 10/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $183.66.

Publicly traded companies mentioned herein: CoStar Group Inc (CSGP)

Highlights

The presenter is long shares of CoStar Group (CSGP) at ~$187, which he characterized as “the Bloomberg of commercial real estate data and information”. With shares having recently pulled back ~15% from $220, the entry point appears to be attractive. The company is the gold standard in its industry, and should exit 2018 with 80% gross and 40% EBITDA margins. The management team - led by CEO Andrew Florance - is excellent and has a track record of successful, aggressive investments and hitting targets; with the acceleration of the transition to the CoStar Suite from LoopNet the presenter is confident that the team will execute. Also, Apartments.com has seen turnover in its sales force, but is still growing revenue 20% - 25%. If CSGP can hit its targets and the presenter’s model is accurate it can generate $6.90 - $7.10 of EPS in 2018 (30 - 50 cents ahead of Street estimates) and the stock could trade up to $240 in 12-18 months (34x the midpoint of his EPS estimate).

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Idea Discussion

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