CoStar Group has named portal veteran Felix Kusch president of Homes.com after the unit delivered its first profitable quarter and 66% year-over-year revenue growth. The leadership change comes as CoStar Group's shares have fallen 52% year to date and its one-year total shareholder return is down 64%, even as the 7-day share price return shows a gain of 4.0%. Analysts following the company see a fair value of $37.30 against a last close of $31.56, framing the slide as a possible pricing gap. CoStar Group's price-to-sales ratio of 3.6x stands above the US real estate industry at 2.7x and a peer average of 1.3x. The bull case rests on continued digitalization and demand for data-driven real estate platforms, while the narrative weakens if Homes.com struggles to scale or competition in residential listings and Apartments.com forces heavier spending and weaker pricing power.
CoStar Group IncHomes.com delivered its first profitable quarter with 66% YoY revenue growth, a positive financial milestone for CoStar.
