Needham & Company analyst Mayank Tandon reiterates a Buy rating for CoStar Group Inc (NASDAQ:CSGP), with a price target of $240.00.

The analyst commented that, “CoStar can support a premium valuation to its LT 20-25% EPS growth rate, particularly as it continues to strengthen its competitive position both through organic and inorganic means.” Tandon addressed CoStar’s capabilities as a top provider of critical information services, and the company’s potential for high barriers to entry, low double-digit organic revenue growth and sustained EBITDA margin expansion.

Tandon expects long-term focused growth-oriented portfolios to consider the recent pull backs by CoStar as an attractive opportunity and an impetus to buy its shares. He further remarked that the $240 target with a likely 15% upside was based roughly on 45x of the FY17 EPS estimate.

According to TipRanks, Mayank Tandon is ranked #144 out of 4,122 analysts and has a 62% success rate recommending stocks with a 15.7% average return per rating.