Topicus: this analyst just raised his price target

Desjardins Securities analyst Jerome Dubreuil says Topicus (Topicus Stock Quote, Chart, News, Analysts, Financials TSXV:TOI) fundamentals remain intact, though he prefers Constellation Software and Lumine Group for now.

As reported by the Globe and Mail, in an Aug. 6 update, Dubreuil maintained his “Buy” rating on Topicus and raised his target to $145.00 from $140.00

“TOI’s stock has rebounded by 26 per cent since this year’s lows and we are seeing signs of improving sentiment on software names,” Dubreuil said.

Topicus is a European vertical market software company headquartered in Deventer, Netherlands. Founded in 2001, it provides specialized software for sectors including healthcare, finance, education and the public sector. The company is a spin-off of Constellation Software.

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Topicus reported Q2 revenue of €437.3-million, up 18% year-over-year, with organic growth of 4%. Net income rose 14% to €47.3-million, or 36 cents per diluted share.

For the first six months of 2026, revenue rose 20% to € 872.9-million, with organic growth of 5%.

Topicus completed acquisitions for €31.2-million of cash consideration, including acquired cash. Deferred payments tied to the deals have an estimated value of €9.0-million, bringing total consideration to €40.2-million.

Free cash flow available to shareholders was €14.6-million in Q2, compared with negative €16.7-million a year earlier. For the first half, it increased 24% to €180.1-million.

Dubreuil said Topicus could benefit from a rotation out of more expensive technology stocks, but he expects the lapping of the large Cipal Schaubroeck acquisition to slow revenue growth next quarter.

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