TSE:OTEX

Open Text (OTEX.TO)

33.83
-0.81 (2.34%)
as of Aug 14, 2026, 6:46:45 pm Market Open.
500 watching
0
Investor Insights
star iconAug 13, 2026, 12:00 am

This summary was created by AI, based on 22 opinions in the last 12 months.

Open Text (OTEX) is experiencing significant investor skepticism due to various factors, primarily associated with the impact of artificial intelligence (AI) on traditional software models. While some analysts see potential value in the company's low price-to-earnings (PE) ratio of 5.2x and a 4% dividend yield, others express concern over the lack of organic growth and the failure of acquisitions to boost operational performance. The stock is currently positioned below important resistance at $35, and many recommendations suggest either waiting for better entry points or looking to invest elsewhere. The recent management changes add to uncertainties about its direction, leading experts to recommend caution with investments in Open Text. Overall, the sentiment remains mixed, reflecting both potential for recovery and significant risks ahead.

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Consensus
Negative
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Valuation
Undervalued
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Similar
CRM
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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