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Open Text (OTEX-T)
427 watching
TSE:OTEX
47.61
1.04
(2.23%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Feb 8, 2023, 9:00 pm
0
DON'T BUY
computer software / processing
$47.460
No
TOP PICK
Shares fell in Q3. It is a lumpy company. Tons of recurring revenues. Growing dividend. Knows the company well. Has owned this on and off over the years. There's been a lot of insider buying from the board. (Analysts’ price target is $55.84)
computer software / processing
BUY
Not in his fund portfolio, but in some separately managed accounts. A leader. Consistently maintains a double-digit growth rate. Couple of missteps, so the stock price took a haircut. Follows it and likes it. (Analysts’ price target is $53.65)
computer software / processing
HOLD
Over 75K enterprise customers, 800K small to medium customers globally. Cloud business is approaching 50% of revenue. Historically, growth by acquisition. Down 35%. How will it be affected by macro headwinds, depth of recession? 9x earnings, organic revenue growth expectations 2-3% range. Cheaper than peers. Attractively valued. A comfortable hold.
computer software / processing
TOP PICK
A valuation play. Shares have fallen 50% from 2021 highs. All negativity has been absorbed. They continue to expand cloud which sets it up well for 2023. Tech will be a winning category along with bonds in 2023. He targets $50 in 12-18 months. Attractive price now. (Analysts’ price target is $55.84)
computer software / processing
BUY on WEAKNESS
Company has navigated tech boom and bust.
Tech infrastructure will remain in demand.
Current dividend valuable.
Valuation presenting good buying opportunity.
Waiting for shares to fall further before buying.
computer software / processing
BUY on WEAKNESS
Great Canadian tech story.
Doesn't own shares in company.
Currently going through merger of A&D opportunity.
Current tech selloff might be presenting good time to buy.
computer software / processing
TOP PICK
More of a spec play, but pays a dividend over 3%. It has been unfairly beaten up this year. Their Google deal is a positive. Has decent fundamentals. Trades at only an 8.3x PE. He will enter this shortly. It's a valuation play. (Analysts’ price target is $61.40)
computer software / processing
PAST TOP PICK
(A Top Pick Oct 05/21, Down 37%) It's down because it faces tough earnings comps. They did well during Covid--and still are--but aren't growing as fast. Also, they made a big purchase (they've made 80 over the past decade) of Microfocus, a large UK turnaround story. OTEX paid a lot for it and will finance it through debt and raise money in the high-yield market (at a rocky time). There's some worry over this deal, but he expects the deal to close and it will be very accretive.
computer software / processing
WAIT
A fan. Safe and steady. Likes the verticalization. Big selloff from expensive valuation. Recent sizeable acquisition may take a while to digest, though management has a good track record. Stock may trade down further. He'd need to see progress on debt repayment.
computer software / processing
COMMENT
Because of the volatility, a tradable security, not an investment. You could buy it down here. Recently named a leader in the Gartner magic quadrant. Double-digit growth rate, very strong balance sheet. (Analysts’ price target is $59.00)
computer software / processing
BUY on WEAKNESS
Likes company but would be hesitant to buy before market calms down.
All tech names being sold off.
If already own shares, continue to hold.
Quality company that expects to do well in the future.
computer software / processing
WATCH
It has 75 000 customers which is only 10% penetration of the software business. It also wants to increase its contact (has 40% right now) with more of the Global 10 000 companies. Its software offering is broader. Is an aquisitor. Would seriously consider buying.
Regarding interest rates, he feels that the effect of rising rates is overblown. Even at 2, 3 or 4% rates are still at historical lows. These rates were normal in the late 1990's (4 1/2%) but the stock market was booming and was at a much higher valuation.
computer software / processing
BUY
Added to their position 7 to 10 days ago. Software companies have been dragged down with tech. Sells to medium and large size businesses globally. Has compounded with 80 acquisitions over the decade. A good combination of growth and value at 12 to13 times earnings.
computer software / processing
PARTIAL BUY
Develop and sell enterprise information management software. Price target of $61.75 USD. You could buy some here at $45, and some at 43. Use a stop of $40. Last week, Gartner Research named it as a leader in content services platforms. A quality name, he just doesn't have room for it. (Price targets refer to the NASDAQ listing in USD.)
computer software / processing
Open Text(OTEX-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 7
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 9
Open Text(OTEX-T) Frequently Asked Questions
What is Open Text stock symbol?
Open Text is a Canadian stock, trading under the symbol OTEX-T on the Toronto Stock Exchange (OTEX-CT). It is usually referred to as TSX:OTEX or OTEX-T
Is Open Text a buy or a sell?
In the last year, 9 stock analysts published opinions about OTEX-T. 7 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Open Text.
Is Open Text a good investment or a top pick?
Open Text was recommended as a Top Pick by on . Read the latest stock experts ratings for Open Text.
Why is Open Text stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Open Text worth watching?
9 stock analysts on Stockchase covered Open Text In the last year. It is a trending stock that is worth watching.
What is Open Text stock price?
On 2023-02-08, Open Text (OTEX-T) stock closed at a price of $47.61.
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Driven by acquisitions. ROIC has fallen. Better opportunities for new capital in Canadian tech such as CSU or TOI. Good, but not exceptional. If you already hold, hang on.