10:44 AM EDT, 07/03/2024 (MT Newswires) -- CoStar Group ( CSGP ) is likely to report mixed Q2 results and could lower its full-year revenue outlook amid a "challenging" commercial real estate market, RBC Capital Markets said in a note e-mailed Wednesday.

The company is scheduled to release Q2 results July 23. RBC expects earnings of $0.10 per share on revenue of $675 million. The market consensus is for $0.09 and $678 million, respectively, the brokerage said in a note to clients. The firm projects bookings at $78 million, which it said was below market consensus of $93 million.

"We expect the core bookings to be impacted due to the challenging CRE market and sales focus on Homes.com," RBC analyst Ashish Sabadra said.

The brokerage reiterated its outperform rating on the CoStar ( CSGP ) stock, with a $109 price target, saying it expects the core headwinds to be mostly cyclical.

"Despite the near-term challenges with Homes.com membership, we believe the company can reaccelerate growth over the mid-term as it tweaks its go-to-market strategy and agent membership value proposition while improving unaided brand awareness by further enhancing the app/website and sustained advertising/marketing campaign," the analyst said.

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