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Open Text (OTEX-T)
TSE:OTEX
39.49
0.76
(1.89%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
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Markets fade to end the week downMegatech spooks marketsSoft jobs report lifts U.S. markets, TSX flatThis summary was created by AI, based on 24 opinions in the last 12 months.
Open Text Corporation (OTEX) is experiencing a mixed reception from experts in the financial community. While some believe the company is poised to benefit from its recent AI initiatives and its commitment to reducing debt, others highlight concerns regarding its past acquisitions, particularly one that negatively impacted its balance sheet. Analysts note that the stock trades at a low valuation compared to industry standards but criticize the company's slower growth rates and deteriorating market confidence. Some experts see potential upside in the stock due to its free cash flow and dividend yield, even as others suggest better investment opportunities exist elsewhere. Overall, there is an acknowledgment that although the company is making strides in AI integration, its long-term outlook remains uncertain and somewhat compromised by its debt levels.
$43.380
Unknown
The Canadian based data and management software developer is once again building cash reserves as debt is aggressively retired and shares bought back. It trades at 16x earnings, 1.8x book and has a good yield that is backed by a payout ratio under 60% of cash flow. We recommend setting a stop-loss at $34, looking to achieve $49 -- upside potential of 18%. Yield 3.4%
(Analysts’ price target is $49.10)Pulled back from earlier this year. Broke downward trend line (a really good sign), now seeing a base and a breakout. Technicals look good, could break higher.
Promised a lot, and if they can deliver it will be a great investment. That proof is still in the pudding. Doesn't have a strong opinion on whether management is capable of delivering. He agrees that market's lost confidence in its M&A ability. Expectations are quite low, so it would be easy to do well. A solid hold.
It made an acquisition which the market didn't like and the stock has fallen significantly. It is a growth by acquisition company and tends to have bumpy revenue post acquisition. He thinks it is under-priced here and there is more upside, but it is a show-me story.
About 10% left on the upside runway. Better opportunities elsewhere.
(Analysts’ price target is $49.25)Familiar with business. Good at M&A, but has used a lot of debt in business model. Better options like Constellation Software available for investors. Doesn't own shares.
It now has a different strategy and is not acquisition driven any more. Other companies are more attractive for returning capital to shareholders.
12-month price target of $48. More appealing, longer runway opportunities elsewhere.
Coming into the low point it saw in 2022, trying to bounce off, so far so good. Earnings will either add to that momentum or do the opposite. He doesn't usually buy the day before earnings.
If earnings news is good, could easily see return to mid-high $50s, a big level of resistance in the past. If you own it, give them the benefit of the doubt. If not, hold off until they report.
Other companies in the space make more sense to him. Getting into AI in a big way. Not impacted by today's market dive too much. He has a 12-month price target of $49.25. Add in thirds here around $43, $41, and $39. (Shouldn't go below $37.50.)
Last earnings beat on top and bottom lines, but not on margins (32% vs. expected 36-37%). Capex with so many companies has just ballooned, as they try to be competitive.
Buying shares in recent market selloff. Latest earnings report not strong. However, business is very good. Would recommend holding for long term investors. Recent M&A has a lot of potential. Expecting higher margins and cash flow.
Disaster the last 5 years, down about 40%. Should be doing better, given demands for software. Market did not like one expensive acquisition, hurt balance sheet, still not recovered. No interest.
CSU is the one for him.
It has its moments from time to time, but overall hasn't been great for awhile. Part of the issue is it's still quite levered. There are other compounding machines, but this one just doesn't get the job done. Sell, and buy something like DSG or CSU.
He's looked at it and it's done a fairly good job. Would much prefer ENGH or CSU. And CSU is the clear market leader of companies that rely on acquisitions to drive growth.
Open Text(OTEX-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 11
Neutral - Hold Signals / Votes : 3
Bearish - Sell Signals / Votes : 7
Total Signals / Votes : 21
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, 21 stock analysts published opinions about OTEX-T. 11 analysts recommended to BUY the stock. 7 analysts 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?
21 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 2025-02-18, Open Text (OTEX-T) stock closed at a price of $39.49.
That's a question every company should be asking. It takes a long time for technology to disrupt an industry. OTEX has to keep investing to stay relevant, and AI might be an opportunity. Not particularly high growth, but they chalk up free cashflow. Buys back 10% of shares every year.