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.

consensus icon
Consensus
Caution
valuation icon
Valuation
Undervalued
review icon
Similar
CRM
DON'T BUY
Has been a strong consolidator in the software industry. Most of their growth has come through acquisition. Finds these situations to be a bit higher risk. Prefers organic growth.
COMMENT
His model price is $27.67, a 12.6% positive differential. He's finding more value elsewhere.
BUY
Likes the technology sector. Valuation is reasonable. Good upwards trend line.
DON'T BUY
Recently bought Hummingbird. Stock has had a pretty good move. Couldn't see the long-term sustainability of this business.
COMMENT
Great little company. Everyone is focusing on their Hummingbird acquisition. Hummingbird's margins are smaller so there will be problems down the road. Trading at 14 X next year's earnings, which is tremendously cheap.
COMMENT
Looks like the stock has a lot of momentum behind it. If it gets up to $26, you are doing well. Use a stop loss of $22.
DON'T BUY
When 2 companies that are really not leaders get together, typically, the sum is not greater than the parts. They did a phenomenal job filling a niche when the Internet/network was first happening. No long-term opportunity.
WEAK BUY
Recently acquired Hummingbird. In the top 20% of his database. Earnings have been bumped up about 4% in the last 90 days. Could be an acquisition target. Doesn’t own, but is seriously considering.
SELL
Has had a nice move off the Hummingbird acquisition. Have been able to get some nice synergies. However, both companies were selling software that was not killer applications.
DON'T BUY
Has had a good run. Acquired Hummingbird (HUM-T) and would give it a quarter or two to see if management has spent too much time on the acquisition trail.
DON'T BUY
Their acquisition of Hummingbird doesn't really do anything for them. It's one sleepy company buying another. They don't have a great track record on acquisitions.
WATCH
The deal with Hummingbird will allow them into areas where they have not been. Have some very interesting software. Ranks 172 which is on the borderline of the top 25%. Watching it closely.
COMMENT
Acquiring Hummingbird (HUM-T) which should be positive. Open Text could also be acquired. Rents neutral in his model at 284. Earnings are expected to grow by the year end June ‘07 from $1.14 to $1.28 against a 13 P/E So it is not terribly expensive.
DON'T BUY
This company has to see licensed growth. Their main source of revenue is off their legacy installed base.
DON'T BUY
They have been on the downside in the trend in technology. They were in a niche for information sharing but the need for that niche is disappearing.
Showing 346 to 360 of 464 entries