TD Cowen analyst David Kwan maintained a Buy rating on Constellation Software yesterday and set a price target of C$4,200.00.
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David Kwan has given his Buy rating due to a combination of factors, most notably the clear re-acceleration in Constellation Software’s acquisition pace, which is translating into stronger growth prospects. He believes that management’s commentary has eased near‑term worries about margins, shifting investor attention toward the robust M&A pipeline and its potential to sustain earnings expansion.
Kwan also highlights that private software valuations, especially in the smaller deal segment where Constellation is most active, have remained resilient, supporting continued disciplined capital deployment. In addition, he notes that enhanced internal deal expertise is improving the company’s ability to close larger transactions, reinforcing confidence in Constellation’s long‑term growth and justifying a Buy recommendation despite ongoing AI‑related uncertainty.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a C$3,500.00 price target.
CSU’s price has also changed moderately for the past six months – from C$3277.560 to C$2467.530, which is a -24.71% drop .