PAST TOP PICK
Open Text
(A Top Pick Oct 11/22, Up 54%)

It is involved in the AI space and has been integrating it into their product solutions. It has done well with the tech bounce. He could see a further pullback before getting back into it.

computer software / processing
WAIT
Open Text

A good company and business model, fundamentally 8/10. Be cautious on valuation, wait for a healthier pullback. Risk/reward isn't there right now. Likes it in the long run. 

(Analysts’ price target is $59.00)
computer software / processing
BUY
Open Text

He bought then sold it (though missed the peak). Wants to rebuy it. They like their latest acquisition, and they grow by buying, not organically. They migrated well from licensing to cloud services, which will raise their PE over time. Trades at a great 12x PE.

computer software / processing
BUY ON WEAKNESS
Open Text
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

OTEX reported a net loss of US$48.7 million in its fourth quarter, down from earnings of $102.2 million last year. This was attributed to acquisition expenses. Revenue of $1.5 billion rose 66.2% year-over-year marginally beating estimates. Annual recurring revenue of $1.2 billion rose 56.4% year-over-year, and cloud revenues of $452 million were up 9.7% year-over-year. Quarterly enterprise cloud bookings rose 12.3% to $164 million. Adjusted EBITDA came in at $463 million, reflecting a margin of 31.0%. The company also announced opentext.ai, a strategic approach to advance how customers can apply artificial intelligence with OpenText software. Management guided the MCRO acquisition to return to organic growth in FY2024, earlier than expected. We think it is still some time to see valuation recovery for OTEX. We would consider anything under $48 to be a reasonable entry point. 
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computer software / processing
BUY ON WEAKNESS
Open Text

He targets $62.25. He likes and follows it, but they bought Micro Focus for$6 billion, half their market cap. So if they can integrate that quickly. It would make them more competitive. Buy at $48, then at $45 in tranches. Too expensive now.

computer software / processing
Unspecified
Open Text

It has been cheap for a long time since it hasn't shown growth. It is growing now at 22% and is trading at 8X. Has an imperfect balance sheet.

computer software / processing
DON'T BUY
Open Text

Tech company based in Canada.
Very high debt levels.
Not a good time to buy shares. 
Better names in tech sector. 

computer software / processing
TOP PICK
Open Text

Global, site-based and cloud-based. Installed base of 150M+ users. No customer concentration risk. 80% of revenues are recurring. Sluggish organic grower, but very capable serial acquirer. Just closed most skeptical acquisition, seems to be going well. Shareholder return over 20 years of 13.4%, 10x the TSX tech index. Deeply discounted at 9x earnings vs. its 10-year average of 13x. Yield is 2.38%.

(Analysts’ price target is $63.80)
computer software / processing
WEAK BUY
Open Text

Not expensive at 9x earnings, huge free cashflow. Growth by acquisition story. Strong revenue growth, but not mirrored in free cashflow growth. Buying it won't hurt you, but he prefers something like MSFT. Yield is 2.3%.

computer software / processing
BUY
Open Text

Has recently added position.
Prospects for business positive.
Recent M&A very good for business.
Believes further upside at current share price. 
Lots of recurring revenue. 

computer software / processing
PAST TOP PICK
Open Text
(A Top Pick Mar 18/20, Up 18%)

It performs when the market is volatile or frothy. Interesting. It bottomed in mid-2022 around $36 and topped in mid-2021 around $72. They gobble a lot of companies. Fine organic growth. Good to buy today.

computer software / processing
BUY ON WEAKNESS
Open Text

Does not own shares. Follows closely.
Wait for shares to fall before buying.
Has seen shares really YTD.
Tech sector should expect further recoveries, but expect volatility. 
US Fed rate hikes will affect company (not much upside).


computer software / processing
DON'T BUY
Open Text

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.

computer software / processing
TOP PICK
Open Text
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
Open Text
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
Showing 1 to 15 of 406 entries

Open Text(OTEX-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 12

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 15

Stockchase rating for Open Text is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

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, 15 stock analysts published opinions about OTEX-T. 12 analysts recommended to BUY the stock. 2 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?

15 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 2023-10-03, Open Text (OTEX-T) stock closed at a price of $46.8.