We wrote up CSGP in 2017. We think there was limited interest in it. Sticker shock on EV/EBITDA puts people off. This is a big mistake.
Once you understand the business is three monopoly-like businesses, with huge pricing power and very limited incremental costs it will become a potential core holding.
Sustainable organic growth of ~15%
Incremental margins of ~90%
Execution in marketplaces for the next couple of years will drive results, along with M&A, with the near-term potential that the RentPath deal gets FTC approval.
Potential Upside: $1072 (+60%) over two years
Sensible Downside: $564 (-15%)
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