Thanos Moschopoulos, an analyst from BMO Capital, maintained the Buy rating on Constellation Software (CSU – Research Report). The associated price target is C$5,500.00.
Thanos Moschopoulos’s rating is based on several key factors that highlight Constellation Software’s strong performance and potential for growth. Despite a slight shortfall in revenue and EBITDA compared to expectations, the company’s mergers and acquisitions activity in the fourth quarter exceeded expectations, indicating robust strategic growth. The company’s cash flow performance was notably strong, surpassing consensus estimates, which reflects its solid financial health.
Additionally, Constellation Software’s stable consolidated margins and its ability to manage a diversified business portfolio contribute to its attractiveness as an investment. The company’s valuation is considered appealing when compared to other high-performing conglomerates, and its strong balance sheet further mitigates potential risks. These elements, combined with a positive outlook on EBITDA growth, support the Buy rating given by Moschopoulos.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$5,700.00 price target.