
TSE:OTEX
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.
He just bought a lot of this and likes tech, especially those that grow by acquiring like OTEX. It's been good at finding additional products to include in their packages. He likes this for the long-haul. Tech is a safe space in the coming 12-18 months. Canadian tech is cheaper than the U.S. FAANGs, though he owns Netflix and Disney.
Prefers this to Shopify. Less demanding multiple at 14-15x. Doesn't have the 30-40% gut-wrenching pullbacks, and sometimes boring is beautiful.
They reported Q3 earnings last night and they were strong results. They do enterprise content and information management through site and cloud based delivery. They have 10,000 companies and 97% of revenue comes from outside Canada. Over 20 years their ROE has averaged over 14% -- triple the TSX average. They are partnering with Amazon web services. Boring tech can be beautiful. Yield 1.86% (Analysts’ price target is $62.51)