David Kwan, an analyst from TD Cowen, maintained the Buy rating on Constellation Software. The associated price target was lowered to C$5,300.00.
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David Kwan has given his Buy rating due to a combination of factors that highlight Constellation Software’s strong position and potential for growth. Despite a slight miss on revenue expectations in Q3, the company’s revenue grew by 16% year-over-year, and its EBITDA exceeded estimates, reflecting robust operational performance. The company’s ability to generate significant free cash flow and maintain a healthy balance sheet with substantial capital available for mergers and acquisitions further supports the positive outlook.
Additionally, Constellation Software’s active M&A strategy, with a strong start to Q4, underscores its commitment to growth and expansion. The company has already made significant acquisitions, and its focus on targeting public companies amidst valuation pullbacks suggests strategic foresight. Trading below its historical average and at the lower end of its 10-year range, the stock presents an attractive risk/reward profile, making it a compelling buy for investors.
According to TipRanks, Kwan is ranked #1317 out of 10072 analysts.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a C$5,600.00 price target.