TSE:OTEX

Open Text (OTEX.TO)

31.56
+1.28 (4.23%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
500 watching
0
Investor Insights
star iconJul 24, 2026, 12:00 am

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

Open Text (OTEX) has received mixed reviews from experts, reflecting a split sentiment on its current market position. The company is seen as undervalued by some analysts due to its low price-to-earnings ratio and a consistent dividend yield. However, concerns regarding its organic growth, high debt levels, and management issues have led others to classify it as a 'value trap.' The recent performance has been hindered by broader market fears about AI impacting software companies, with ongoing management changes creating uncertainty. While some analysts suggest potential entry points for buying, the overall sentiment conveys caution, with predictions of further instability in the near term as existing competition and market trends shape the future trajectory of Open Text.

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Caution
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CRM
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.
BUY
There is a group of tech stocks that did not lead in the recent market strength in the US. OTEX-T made a few acquisitions in the year which he thinks were pretty good. The market is sitting back to see where these acquisitions go. He likes management.
TOP PICK
He is comfortable with their ability to integrate their acquisitions. They have a track record of their acquisitions having worked in the past. You get a reasonable dividend. It is a replacement for CSU-T. (Analysts’ price target is $55.92)
BUY
It is a great company and quite successful. There is concern they will run out of acquisition targets. They say there are about $100 Million in targets. He thinks it is quite attractive.
BUY
Canada's most successful software company. They sell mainly to businesses. They continue to make acquisitions. Well-run, with a CEO who believes he can triple the company.
PAST TOP PICK
(A Top Pick Nov 22/17, Up 7%) Enterprise software and consolidator. They are doing a good job. He met last week with them. He would have them run any business and buy shares. It is a long term hold for him.
BUY ON WEAKNESS
They reported earnings yesterday. He thinks it is a great company and one should add at $39.73 to any holdings. He is not worried about the recent sell off in the entire tech space.
BUY ON WEAKNESS

He is looking at the name more closely. It is on the leading edge of technology and cloud. He likes it. Doesn’t look too expensive.

HOLD

It is not very expensive on a valuation. They are still growing through acquisition. Is probably quite safe at these levels.

TOP PICK

Technology is one of the really good areas. These guys are always good at acquisitions. They spent a lot of time on organic growth in the last year. They have a fantastic balance sheet. These guys are always takeout candidates. (Analysts’ target: $57.54).

PAST TOP PICK

(A Top Pick August 21/17, Up 15%) Had been trading at a low multiple. Probably will pay down debt and get ready for the next acquisition. He has a small position.

HOLD

Tech sector down in the US from its June peak and that translate into some Canadian companies in the sector like this one. They are due for another acquisition in his opinion. They are taking a new approach now with the new CEO focusing on return on invested capital. Very good long-term capital allocator. (Analysts’ price target is $57.00)

TOP PICK

It reminds him of Constellation Software. OTEX-T has a long track record of making acquisitions accretive. What has changed is the organic growth side of the business picking up. They have low debt, also.

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