BMO Capital Markets Has Lowered Expectations for Constellation Software (TSE:CSU) Stock Price

Key Points

• BMO Capital Markets cut its price target on Constellation Software to C$4,200 (from C$4,600), still implying roughly a 42.86% upside from the current share price; multiple other analysts have also lowered targets, leaving a consensus price near C$4,187 and an overall rating of Moderate Buy.
• Shares recently traded down to C$2,940, below the 200‑day moving average (C$3,396.86) and inside a 12‑month range of C$2,196–C$5,300, with a market cap of about C$62.3 billion.
• Quarterly results showed C$7.12 EPS on C$4.19 billion revenue, but the stock carries high valuation and leverage — PE ~90.7, PEG ~2.95 and debt‑to‑equity ~156.85 — highlighting growth expectations and balance‑sheet risk.

Constellation Software (TSE:CSU - Get Free Report) had its price target dropped by BMO Capital Markets from C$4,600.00 to C$4,200.00 in a research note issued to investors on Tuesday,BayStreet.CA reports. BMO Capital Markets' price target would indicate a potential upside of 42.86% from the stock's current price.

A number of other equities research analysts also recently commented on CSU. Jefferies Financial Group lowered their price objective on Constellation Software from C$5,850.00 to C$4,500.00 in a research report on Monday, November 10th. Royal Bank Of Canada cut their target price on shares of Constellation Software from C$5,600.00 to C$4,800.00 and set an "outperform" rating on the stock in a research note on Monday, January 26th. Canadian Imperial Bank of Commerce dropped their price target on Constellation Software from C$5,260.00 to C$4,668.00 in a research report on Friday, January 16th. Raymond James Financial dropped their price target on shares of Constellation Software from C$5,250.00 to C$4,300.00 in a research note on Monday, November 10th. Finally, National Bank Financial cut their price objective on shares of Constellation Software from C$4,500.00 to C$3,200.00 and set a "sector perform" rating on the stock in a research note on Thursday, January 22nd. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of C$4,187.14.

Constellation Software Stock Performance

Shares of CSU stock traded down C$35.00 during trading hours on Tuesday, hitting C$2,940.00. The stock had a trading volume of 53,972 shares, compared to its average volume of 113,056. The stock's 50 day moving average is C$2,731.98 and its 200 day moving average is C$3,396.86. Constellation Software has a twelve month low of C$2,196.00 and a twelve month high of C$5,300.00. The firm has a market capitalization of C$62.30 billion, a PE ratio of 90.74, a PEG ratio of 2.95 and a beta of 0.33. The company has a debt-to-equity ratio of 156.85, a current ratio of 1.02 and a quick ratio of 0.55.

Constellation Software (TSE:CSU - Get Free Report) last issued its quarterly earnings results on Monday, March 9th. The company reported C$7.12 earnings per share (EPS) for the quarter. Constellation Software had a net margin of 6.16% and a return on equity of 21.78%. The business had revenue of C$4.19 billion for the quarter. As a group, research analysts forecast that Constellation Software will post 55.4616354 earnings per share for the current fiscal year.

About Constellation Software

Constellation Software is an international provider of market-leading software and services to a number of industries. Our mission is to acquire, manage and build market-leading software businesses that develop specialized, mission-critical software solutions to address the specific needs of our particular industries. Our company was founded in 1995 to assemble a portfolio of vertical market software companies that have the potential to be leaders in their particular market. Since then, we have grown rapidly through a combination of acquisitions and organic growth, and established a strong constellation of companies with a large, diverse customer base.

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