CoStar Group: Activist Pressure Makes The Upside Hard To Ignore

Impact · against what's priced in

CSGP is a potential catalyst candidate as activist pressure from Third Point targets the divestiture of Homes.com to unlock free cash flow. If successful, shifting focus back to the core CRE business with 18% growth could drive margins toward 47%.

CSGP+0.60

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In context

Third Point's pressure to halt residential expansion and divest Homes.com introduces a concrete path to unlock hundreds of millions in FCF and push margins toward 47%, while the core CRE business continues to grow at 18%.

Read from the article alone

• cash flow▲7%
• CSGP
• activist investor
• commercial real estate
• cost cutting
• divestiture
• margins
• residential real estate

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