Wells Fargo Sees Buying Opportunity in CoStar (CSGP) Amid AI-Driven Market Decline

CoStar Group Inc. (NASDAQ:CSGP) is one of the best stocks under $50 to invest in. On February 4, Wells Fargo reduced its price target for CoStar Group from $55 to $48 with an Underweight rating. The firm noted that information services shares recently declined due to AI-related concerns following Gartner’s earnings and Anthropic’s expansion into legal workflows.  Despite these trends, the firm views many of these market reactions as unwarranted and identifies attractive buying opportunities among information services companies that possess proprietary data.

However, on January 27, BTIG analyst Jake Fuller recently upgraded CoStar Group from Neutral to Buy with an $80 price target, citing low market expectations and investment levels that have moved past their peak. Fuller noted that Homes.com is gaining momentum and anticipates that an upcoming AI-driven product update will resonate with investors.

Furthermore, the firm raised its revenue estimates for Q4 and FY 2026, expressing expectations for CoStar Group Inc. (NASDAQ:CSGP) to ramp up bookings, achieve double-digit organic growth, and potentially exceed Street expectations.

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

While we acknowledge the potential of CSGP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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