TSE:OTEX
56.28
0.28
(0.50%)
OpenText Corporation is a Canadian company that develops and sells enterprise information management software.
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Open Text
OTEX-T
Analysis and Opinions about OTEX-T
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Opinion
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PAST TOP PICK
PAST TOP PICK
September 10, 2020
(A Top Pick Sep 04/19, Up 9%) Provides software to medium/large businesses. It does cloud and content management for companies, so demand is high. 80% of revenues are recurring with high margins. They're seeing strength in government and healthcare. Their Q4 2020 earnings blew past estimates, growing an impressive 11% YOY during a recession. Continues to buy it.
Show full opinionHide full opinion
(A Top Pick Sep 04/19, Up 9%) Provides software to medium/large businesses. It does cloud and content management for companies, so demand is high. 80% of revenues are recurring with high margins. They're seeing strength in government and healthcare. Their Q4 2020 earnings blew past estimates, growing an impressive 11% YOY during a recession. Continues to buy it.
COMMENT
COMMENT
August 25, 2020
Why is it lagging its Canadian tech peers? They're a little different from Shopify, etc. because they provide AI and cybersecurity to clients. It's up only 2% YTD. The market must be patient with their acquisitions to be accretive, and OTEX is a serial buyer. It drives him crazy that they issue bonds. But growing revenues are possible and they keep increasing their dividend. He owns this plus Shopify and Enghouse.
Why is it lagging its Canadian tech peers? They're a little different from Shopify, etc. because they provide AI and cybersecurity to clients. It's up only 2% YTD. The market must be patient with their acquisitions to be accretive, and OTEX is a serial buyer. It drives him crazy that they issue bonds. But growing revenues are possible and they keep increasing their dividend. He owns this plus Shopify and Enghouse.
BUY
BUY
August 4, 2020
Open Text vs. Docebo He prefers OTEX, hands-down. OTEX is a former top pick. Likes their strategy and cloud-based business. They're an active acquirer of other businesses. Offers decent organic growth, not as good as Shopify but with a far lower PE than the latter around 15x. A stable cash flow, too.
Open Text vs. Docebo He prefers OTEX, hands-down. OTEX is a former top pick. Likes their strategy and cloud-based business. They're an active acquirer of other businesses. Offers decent organic growth, not as good as Shopify but with a far lower PE than the latter around 15x. A stable cash flow, too.
BUY
BUY
August 4, 2020
Allan Tong’s Discover Picks I wrote about this stock recently, so I won't repeat my assessment here. However, I will sum things up by saying that OTEX has increased only 5.3% year-to-date, but has the potential to perform much better once the U.S. contains COVID-19 and gets back on the economic track. Read Top 5 Canadian Tech Stocks (DOCKS): Can they skyrocket like the FAANGs? for our full analysis.
Show full opinionHide full opinionAllan Tong’s Discover Picks I wrote about this stock recently, so I won't repeat my assessment here. However, I will sum things up by saying that OTEX has increased only 5.3% year-to-date, but has the potential to perform much better once the U.S. contains COVID-19 and gets back on the economic track. Read Top 5 Canadian Tech Stocks (DOCKS): Can they skyrocket like the FAANGs? for our full analysis.
BUY
BUY
July 30, 2020
Great Canadian company. Impressive long-term chart. Long-term holders have been well rewarded. Balance sheet is a little leveraged. A liability with the US CCRA is due. Good scale, growth profile, and dividend. Will probably move forward after Covid. Good risk-adjusted return to buy and hold.
Show full opinionHide full opinionGreat Canadian company. Impressive long-term chart. Long-term holders have been well rewarded. Balance sheet is a little leveraged. A liability with the US CCRA is due. Good scale, growth profile, and dividend. Will probably move forward after Covid. Good risk-adjusted return to buy and hold.
BUY
BUY
July 28, 2020
Allan Tong’s Discover Picks For growth, this Canadian IT stock deserves a look. It’s been overshadowed by mega-grower, Shopify, and the American tech titans. Year-to-date, OTEX has risen over 4%. Not bad, but tech stock specialist Kim Bolton sees opportunity for it to grow within the red-hot cloud computing space. True, OTEX trades at a PE of 43x, though that’s nothing compared to Shopify and Lightspeed POS. Read Top 4 BNN Stock Picks to Buy this Summer for our full analysis.
Allan Tong’s Discover Picks For growth, this Canadian IT stock deserves a look. It’s been overshadowed by mega-grower, Shopify, and the American tech titans. Year-to-date, OTEX has risen over 4%. Not bad, but tech stock specialist Kim Bolton sees opportunity for it to grow within the red-hot cloud computing space. True, OTEX trades at a PE of 43x, though that’s nothing compared to Shopify and Lightspeed POS. Read Top 4 BNN Stock Picks to Buy this Summer for our full analysis.
BUY WEAKNESS
BUY WEAKNESS
July 15, 2020
A darling in the space and he has been trying to buy it. They are Canada's leader in enterprise information management. It offers its customers great economies of scale and they have many opportunities to extract value in the cloud space. In their latest release they delivered great revenue and cash flow growth. If it ever becomes affordable he will buy and use options to ensure he can hold it for the long term. (Analysts’ price target is $62.00)
Show full opinionHide full opinionA darling in the space and he has been trying to buy it. They are Canada's leader in enterprise information management. It offers its customers great economies of scale and they have many opportunities to extract value in the cloud space. In their latest release they delivered great revenue and cash flow growth. If it ever becomes affordable he will buy and use options to ensure he can hold it for the long term. (Analysts’ price target is $62.00)
PAST TOP PICK
PAST TOP PICK
July 13, 2020
(A Top Pick Sep 09/19, Up 8%) They continue to grow by acquisition, adding some AI. It's been a great grower in recent years. Its valuation is low at only 10x operating cash flows with 12-14x earnings. Not a high-flyer like its tech peers, but he still likes it and will hold it.
Show full opinionHide full opinion(A Top Pick Sep 09/19, Up 8%) They continue to grow by acquisition, adding some AI. It's been a great grower in recent years. Its valuation is low at only 10x operating cash flows with 12-14x earnings. Not a high-flyer like its tech peers, but he still likes it and will hold it.
STRONG BUY
STRONG BUY
July 7, 2020
Has long owned this cloud computing stock. It's acquisitive. 75% of revenues are recurring. Q1 results reflect the work-at-home trend has benefited them. They have 100 million+ users across the world with 90% of revenues outside Canada, namely the U.S. They do an amazing job of synergizing companies they buy. Over decades they outperform the Canadian tech sector. You can buy this and sleep at night.
Show full opinionHide full opinionHas long owned this cloud computing stock. It's acquisitive. 75% of revenues are recurring. Q1 results reflect the work-at-home trend has benefited them. They have 100 million+ users across the world with 90% of revenues outside Canada, namely the U.S. They do an amazing job of synergizing companies they buy. Over decades they outperform the Canadian tech sector. You can buy this and sleep at night.
BUY WEAKNESS
BUY WEAKNESS
June 10, 2020
It is always on their radar and he kicks himself for not buying on the recent sell off. Very much a leader in information management services, especially under the trend in working from home. He had an entry point in the lower $30s, so he will have to wait to buy on weakness. They picked up a few companies that have expanded their cloud margins and cross-selling opportunities.
Show full opinionHide full opinionIt is always on their radar and he kicks himself for not buying on the recent sell off. Very much a leader in information management services, especially under the trend in working from home. He had an entry point in the lower $30s, so he will have to wait to buy on weakness. They picked up a few companies that have expanded their cloud margins and cross-selling opportunities.
PAST TOP PICK
PAST TOP PICK
June 3, 2020
(A Top Pick May 07/19, Up 12%) At the time he thought they would make an acquisition and they did, adding a cloud based company. They install and sell cloud services. As they continue moving into the cloud the multiples will continue to rise.
Show full opinionHide full opinion(A Top Pick May 07/19, Up 12%) At the time he thought they would make an acquisition and they did, adding a cloud based company. They install and sell cloud services. As they continue moving into the cloud the multiples will continue to rise.
TOP PICK
TOP PICK
May 29, 2020
A large company with $15 billion marketcap. They are involved in data search and capture. The dividend is well covered with only a 21% payout ratio of cash flow. Recent quarterly reported a 13% sales growth. Earnings expected to grow by 14% next year. Yield 1.7% (Analysts’ price target is $62.21)
Show full opinionHide full opinionA large company with $15 billion marketcap. They are involved in data search and capture. The dividend is well covered with only a 21% payout ratio of cash flow. Recent quarterly reported a 13% sales growth. Earnings expected to grow by 14% next year. Yield 1.7% (Analysts’ price target is $62.21)
WAIT
WAIT
May 25, 2020
Tech is looking a little overvalued at presence and he has started trimming back. Look for a pullback before buying. This one would be a buy then.
Show full opinionHide full opinionTech is looking a little overvalued at presence and he has started trimming back. Look for a pullback before buying. This one would be a buy then.
BUY WEAKNESS
BUY WEAKNESS
May 6, 2020
It is involved in enterprise information management software. They are a darling in the space. Users of their software are the largest users in the space. They picked up some interesting companies to expand cloud revenues. Yesterday, they bought a company out of Quebec that offers a great cross-selling opportunity. He has a target of $43, but is looking to buy in the low $30s.
Show full opinionHide full opinionIt is involved in enterprise information management software. They are a darling in the space. Users of their software are the largest users in the space. They picked up some interesting companies to expand cloud revenues. Yesterday, they bought a company out of Quebec that offers a great cross-selling opportunity. He has a target of $43, but is looking to buy in the low $30s.
COMMENT
COMMENT
May 6, 2020
Canadian tech? OTEX and SHOP would be good Canadian tech companies, along with CSU. All well situated for the cloud and e-commerce. He expects to see a market correction, so would wait for lower pricing.
Open Text(OTEX-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 27
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 28
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, 28 stock analysts published opinions about OTEX-T. 27 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is PAST TOP PICK. 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 Brian Madden on 2020-09-10. 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?
28 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 2020-09-30, Open Text (OTEX-T) stock closed at a price of $56.28.
