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TSE:OTEX

Open Text (OTEX.TO)

31.06
+0.54 (1.77%)
as of Jun 12, 2026, 8:00:00 pm Market Open.
501 watching
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Investor Insights
star iconJun 14, 2026, 12:00 am

This summary was created by AI, based on 20 opinions in the last 12 months.

Open Text (OTEX) faces significant challenges as the company navigates a disruptive AI landscape that is reshaping software pricing models and contract renewals. Experts highlight a recent selloff, with concerns about its growth strategy, predominantly driven by acquisitions that have not yielded substantial success. The stock has experienced technical breakdowns, slipping below key support levels, and the company's management changes add to investor uncertainty. Despite some potential for recovery, many experts suggest exploring higher-quality software companies with better execution and growth prospects. Overall, OTEX is perceived as struggling with organic growth while competing with stronger players in the industry.

consensus icon
Consensus
Avoid
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Valuation
Overvalued
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Similar
Salesforce, CRM
HOLD
They development information management software. He has a price target of $44.50 US, which is pretty fairly valued today. It is a leader in enterprise information software.
BUY
He likes it, but has had a rough time with a proposed takeover of a UK company (https://ca.finance.yahoo.com/news/open-text-weighs-takeover-offer-193049589.html), but many investors bailed on OTEX in reaction. He still likes OTEX's fundamentals.
BUY

Sell Fortis and AQN to buy OTEX? AQN is a great utility; they've done a good job growing. He owns Emera in this space. Utilities have done very well until recently when a trade deal looked possible. He'd own OTEX before AQN, because it has generated a higher return on equity historically. Occasionally, OTEX makes a big acquisition to surprise the market in a good way. OTEX is doing more cloud work, which amounts to wider margins.

BUY
Great company. Very diverse client base globally. Strategic partnership with Google should drive revenue and accelerate organic growth. So they won't have to rely as much on acquisitions to drive growth. Not a high P/E ratio. Very capable acquirer in a fragmented industry.
STRONG BUY
It sells at a reasonable valuation. They run a great company. They buy their rivals and bring them in and increase profitability.
BUY ON WEAKNESS
Has it sold off enough to get in? Phenomenal Canadian company. You can buy this cheaper. $62 is his target. Start buying this in the $40's. His rule is to buy a third at a time.
TOP PICK
Growth by acquisition strategy. Great migration from license sales to the cloud. Continued great growth. Excess free cash flow pays down the debt. Yield is 1.71%. (Analysts’ price target is $61.57)
BUY
These stocks come back from a sell off. The stock is at a straight line up. Hasn’t really gone over $60, so he would want to see it break through to buy there.
TOP PICK
They boast 100 million users globally with 75% of revenues coming from subscriptions. 95% of business comes outside Canada. That lessens risk.They spend their large cash flow ($6.2 billion in the last 20 years) buying businesses and they do it well. The stock has generated an annual compound rate of return of 13.5% over 20 years, double the TSX. (Analysts’ price target is $61.78)
COMMENT
It's a good play, but has its challenges. The valuation has improved. Doesn't hate it, but doesn't own it.
BUY
It is one of the best stocks on the TSX over the last few years. Canadian tech stocks have done well relative to the rest of the Canadian market. There is not much choice amongst the Canadian techs.
BUY ON WEAKNESS
He does not own it now, but has been in and out. Researchers put them in the category of supply chain digitizing specialists. He would look to buy it near $450. (Analysts’ price target is $62.00)
TOP PICK
75% of its revenue is recurring. They're highly acquisitive, so they've compounded capital 20% a year for a long time. A long track record. It trades at 11x EBITDA vs. peers 15x. Their last quarter disappointed, but it's now a buying opportunity. For a tech company, it's also defensive: Fortune 500 companies buy their products. Will do well in this environment. (Analysts’ price target is $61.78)
HOLD
They are a large cap slow growth tech name. They make acquisitions. It is fine as a longer term hold. Slow and steady.
BUY ON WEAKNESS
The company is well run. He sees no reason to not buy more when the stock dips.
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