RBC Capital shared its outlook on CoStar Group, Inc. (NASDAQ:CSGP) for fiscal 2023, expecting revenue and EBITDA guidance to be in line with the Street estimates but EPS is likely to come in above the expectations.

According to the analyst, the company should deliver modest 2023 margin expansion as incremental residential investment, namely in content, technology, and Sales & Marketing expenses, is more than offset by operating leverage.

Defensive CoStar (Suite) and continued recovery in counter-cyclical Multifamily, where the analysts model a return to 20% growth by Q4/23, bode well for sustained 2023 revenue growth.