CoStar Group stock tumbles on poor sales guidance, but RBC is bullish
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CoStar Group (NASDAQ:CSGP) stock dropped 12.2% in Wednesday premarket trading after the information, analytics, and online marketplace services provider guided for Q1 and FY23 revenue, each falling short of expectations. 
The below-consensus guidance, along with News Corporations' (NWS) Tuesday announcement that it's no longer in talks to sell its Move real estate unit to CoStar (CSGP), have resulted in CSGP shares selling off. 
However, RBC Capital Markets believes the risk-off sentiment "will be bought given solid momentum in CoStar (Suite) and Multifamily and robust 39% ex-residential margin in FY22/FY23," analyst Ashish Sabadra, who justified CSGP with an Outperform rating, wrote in a note to clients. 
"With the Move acquisition overhang lifted and the stock selling off on larger-than-expected residential investment, we believe this creates an attractive long-term buying opportunity," he added. CSGP was down 2.1% year-to-date, but up 20.8% over the past year. 
Sabadra's Outperform rating echoed the average Wall Street analyst rating of Buy, but diverged from the Quant rating of Hold. 
Take a look at what CSGP management discussed during the company's Q4 earnings call.