The Globe and Mail reports in its Wednesday edition that CIBC analyst Stephanie Price upgraded Constellation Software to "outperformer" from "neutral," after reassessing her assumptions about its public sector business, which accounts for almost 70 per cent of annual revenue. The Globe's David Leeder writes that Ms. Price elevated her share target to $1,300 from $900. Analysts on average target the shares at $1,008.61. Ms. Price says in a note: "Looking at Constellation's collection of public sector businesses, we also reassessed whether a peer multiple basis is the right way to look at a company with almost 200 different business units. If Constellation is viewed as a private equity firm, a DCF valuation taking into account future capital deployment could be viewed as a more appropriate valuation measure. We created a DCF that takes into consideration the rate of capital deployed on acquisitions. We assumed 80-per-cent FCF is initially deployed on acquisitions declining 10 per cent per year over 10 years as it becomes challenging to deploy an increasing level of FCF. Underpinning this, we assume 4-per-cent organic growth rate. Over the 10-year period we forecast 25-per-cent margins increasing 50 bps per year."