TSE:OTEX

Open Text (OTEX.TO)

34.25
+1.62 (4.96%)
as of Sep 3, 2026, 8:00:00 pm Market Open.
500 watching
0
Investor Insights
star iconSep 3, 2026, 12:00 am

This summary was created by AI, based on 21 opinions in the last 12 months.

OpenText (OTEX) has drawn mixed reviews from experts, reflecting a landscape of cautious optimism versus skepticism. While some analysts highlight the stock's potential value given its low PE ratio of 5.2x and a 4% dividend yield, others stress the challenges posed by changes in the AI landscape, which could disrupt traditional software pricing models. The stock is currently building a base around the $28-$35 range, with a significant breakout potential if it surpasses the $35 resistance. However, concerns about its lack of organic growth, management changes, and heavy reliance on acquisitions have cast doubts on its long-term viability. As a result, many suggest exploring better opportunities in the software sector while keeping an eye on OpenText’s movements, especially after earnings reports.

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Consensus
Cautious
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Valuation
Undervalued
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BUY ON WEAKNESS
Good acquisitions. He recently sold it, because of fears of the US dollar weighing on their earnings. He regrets this, because it has since moved up 10%. He likes the company and is looking for a better entry point than the current price. A good growth company.
BUY ON WEAKNESS
A company tech company. A good serial acquirer in Europe and North America. He's waiting for a pullback, say to $45.
BUY ON WEAKNESS
Strong fundamentals, but it's running into resistance now.
COMMENT
Open Text vs CGI? The major difference is that one pays a dividend and one grows by acquisition. For these reasons he prefers OTEX-T for the 1.6% dividend.
TOP PICK
A high free cash flow -- about three-quarters of a billion dollars annually. He expects them to continue growing by acquisition. Technically, he sees upside to $55. Yield 1.63%. (Analysts’ price target is $57.54)
COMMENT
CGI vs Open Text? He would like to own both of these. Having some growth in your portfolio is good -- especially if the economy is going to slow. He likes the yield of Open Text. He likes the predictably of earnings with CGI, so slightly favours it.
BUY
October to March seasonality. It's moved above its 200-day moving average and has gapped higher. $48 is support and when you can buy and ride it higher.
BUY
The recurring revenue has been growing. It has had a big basing pattern for a couple of hears. If you own any technology in Canada, this one has to be part of it.
PARTIAL BUY
They're about to report. They had a rare test of support at $40 and held. Technicals say buy or hold.
COMMENT
He uses US tech's. There is nothing negative to say about OTEX-T but there is more compelling value in the US. It holds in very well and trades very well. He would not buy this multiple. The company is well run.
HOLD
A software company and a good value stock. He likes it as it grows by acquisition. The market is taking a wait and see on the latest acquisitions, but he thinks the CEO is rock solid.
PAST TOP PICK
(A Top Pick Feb 20/18, Up 5%) They continue to grow by acquisition. The recent pullback in the tech space creates a great opportunity for them in the space as they have great cash flow going forward. He will look to get back into it over the next six months.
DON'T BUY
It tends to get to the end of its seasonal cycle soon. He would hold off because we are ending the seasonal cycle. We are showing some basing here and if it goes up that would be positive.
WATCH
A longtime great performer. They continue to do acquisitions well. He's up 30-40%. Current levels are reasonable. But under the new CEO they are taking on a lot of debt as they aquire, which is a concern. He wants to see more debt repayment. Dividend will continue to rise. Definitely watch this.
BUY
A very well managed Canadian software company that grows by acquiring others into its platform. You will get consistent growth as a stream of acquisitions comes along. You get it cheap and it has a solid outlook. There is probably 30% upside in a better market environment.
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