Morningstar lowered its fair value estimate for CoStar Group after a review by a new analyst. This adjustment follows scrutiny of the company’s heavy investment in its residential platform, Homes.com.
Morningstar identified missteps within the Homes.com strategy in its latest analyst note. The firm maintains that these challenges will not permanently damage the company’s core franchise.
Morningstar kept a positive long-term outlook on the stock. The report describes CoStar Group shares as appetizing at current levels.