Constellation Software: Strong Execution, Durable Growth, and Undervalued Competitive Position Support Buy Rating

BMO Capital analyst Thanos Moschopoulos has maintained their bullish stance on CSU stock, giving a Buy rating yesterday.

Thanos Moschopoulos has given his Buy rating due to a combination of factors, including Constellation Software’s strong Q4/25 performance, where both revenue and EBITDA surpassed market expectations and cash flow was notably ahead of consensus. He highlights the company’s consistent organic recurring revenue growth, solid capital deployment through ongoing M&A, and a robust year‑over‑year expansion in profitability and cash generation, despite a sector-wide compression in valuation multiples.

He also points to Constellation’s high-quality management and long track record of attractive returns on invested capital, healthy margins, and strong balance sheet as reasons to have conviction in the business. In his view, the market is undervaluing the durability of Constellation’s competitive position and its ability to integrate AI and its new Permanent Engaged Minority investments strategy, supporting his outlook for sustained EBITDA growth and making the current valuation compelling relative to other top-tier software conglomerates.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a C$4,100.00 price target.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is neutral on the stock.