Wells Fargo Remains Cautious on CoStar Group (CSGP) but Sees Rival Lawsuits as Neutral to Positive News

CoStar Group Inc. (NASDAQ:CSGP) is one of the best QQQ stocks to buy according to Wall Street analysts. On November 17, Wells Fargo lowered the firm’s price target on CoStar Group to $60 from $70 and kept an Underweight rating on the shares. Wells Fargo’s sentiment was announced after the firm spoke with Lawrence Frankel, a former government antitrust lawyer, to understand the potential impact of new lawsuits filed by the Federal Trade Commission/FTC and Compass against Zillow and Redfin. Wells Fargo believes that these lawsuits are neutral to slightly good news for CoStar.

In other news, CoStar Group recently released its Q3 2025 earnings report, where the company disclosed making $834 million in revenue, which was a 20% year-over-year increase. Adjusted EBITDA rose by 51% to $115 million. Total net new bookings saw massive growth and reached $84 million, up 92%.

CoStar faced several challenges in the said quarter, including the previously mentioned significant legal challenges against competitor Zillow, including CoStar’s $1 billion-plus copyright infringement claim and the FTC’s antitrust suit against Zillow and Redfin over rental advertising, which could alter the competitive market. The company also faces the resource strain of integrating new acquisitions like Domain and allocating resources to AI technologies, which may not yield immediate returns.

CoStar Group Inc. (NASDAQ:CSGP) provides information, analytics, and online marketplace services in the US, Canada, Europe, the Asia Pacific, and Latin America.

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Disclosure: None. This article is originally published at Insider Monkey.