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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
0
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
valuation icon
Valuation
Overvalued
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Similar
Salesforce, CRM
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.
BUY ON WEAKNESS
CGI vs. OTEX He's been watching Open Text and will buy it under $40. They're good at making purchases. He prefers it to CGI which is too high right now.
PAST TOP PICK
(A Top Pick Feb 15/18, Up 2%) He still likes it. A good long term growth story. They acquire and then pay down the debt with cash flow.
PAST TOP PICK
(A Top Pick Jan 05/18, Up 6%) They continue seeing good opportunities for acquisition. They are also planning on good organic growth. They sold out when the stock began to retrace earlier in Q4, but it is now a good candidate for re-purchase now.
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