TSE:OTEX

Open Text (OTEX.TO)

34.64
+1.28 (3.84%)
as of Aug 13, 2026, 8:00:00 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
DON'T BUY
Having a little rebound. His sense is that the company is showing that it is turning the corner after stumblig with their European acquisition. Still concerned about their ability to grow. Growth rate going forward is single digits, not double digits.
DON'T BUY
Not growing. Markets are tough. They are looking at making it a more efficient operation. A competitive environment and not sure they can grow their revenue.
PAST TOP PICK
(Past Top Pick April 18/05. Down 17%.) Made a wrong call on this one. It is attractive at the current level. One of the cheapest softwares you can find around. It has problems that he had underestimated. Didn't sell. Believes there is some potential here, but only for people who like risks.
WEAK BUY
Has had huge interests from customers because of Sarbanes-Oxley act. They have access to the e-mailing archiving side as well as content management. Looks like it's within 7% of a bottom. Model doesn't like it because of disappointments and negative earnings estimate revisions. Would buy a little if the market pulls back and then wait and see.
DON'T BUY
Had a strong niche of sharing documents between offices of the same franchise globally. That niche is now basically being built into networks. They are running the risk of becoming obsolete.
DON'T BUY
They did a great job finding a niche that was unserved as technology was really rolling out. Gradually standardization of technology has made the problem of sharing documents invisible.
TOP PICK
Troubles are not over, but at a good price to buy it back. The problem is not the company, but is the stock market and giving guidelines. One time they gave wrong guidelines and investors don't like this. At the current price, the stock has great potential.
DON'T BUY
Likes to Buy businesses for the long term with the goal of a stock worth more in 3 years than at present. This company has done a great job in filling a niche in terms of document sharing but that niche is closing off rapidly.
TOP PICK
Attractive at the current price. Could be a takeover target some day.
DON'T BUY
Recently stated that earnings would not be as expected because of some large contracts that had slipped in the most recent quarter. The stock ranks 500 out of 700 in his database.
DON'T BUY
Getting killed in the after-market. A huge profit warning. Downside as much as 35%. Missed revenue.
BUY
They are in the document management business. This is a huge issue for companies, archiving e-mails, retrieving them for legal puposes, managing work flow and document flow. This is a terrific growth area. We are in the early days of this industry, so it can be volatile. Relatively cheap.
BUY
Beat the street with their earnings. Has been some good research on it. Have good products. The sector has been under pressure in general. Worthy of being in a portfolio of tech stocks.
SELL
Despite repeated pretty good rallies in the market, the software group and NASDAQ has underperformed the rest of the market. This stock is seeing a de-acceleration in its revenue growth.
WEAK BUY
Rumours of an investigation by OSE, but would be suspicious of the source. Likes the business and the enterprise management space. Great cash generation. Good valuation in the tech sector.
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