02:39 PM EDT, 10/16/2024 (MT Newswires) -- CoStar Group ( CSGP ) faced headwinds in core bookings in Q2, but the challenges should moderate in Q3 with projected core revenues in line with expectations, RBC Capital Markets said in an earnings preview emailed Wednesday.

"We expect core revenues to be in line and reiterate core revenue growth," the firm added.

RBC expects Q3 bookings of about $55 million, below consensus estimates due to slower growth in Homes.com and Apartments.com, along with a weak commercial real estate market.

Bookings for Homes.com will slow down to about $5 million in Q3 due to slower agent additions and higher attrition, according to the preview.

"Long-term, we expect net new booking at Homes.com to improve, driven by a dedicated sales team, educating agents on the platform's value proposition and leveraging its increasing web traffic," RBC said.

The brokerage rates CoStar's ( CSGP ) stock at outperform with a price target of $96.

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