Open Text (NASDAQ:OTEX) Given New $33.00 Price Target at Scotia

Key Points

• Scotia cut Open Text’s price target from $40 to $33 while maintaining a “sector outperform” rating, implying roughly 33.5% upside from the prior close.
• Analyst sentiment remains cautious overall: Open Text has a consensus “Hold” rating and an average target price of $32.29, with other firms setting targets between $25 and $29.50.
• Shares fell 3.7% to $24.71, despite the company reporting quarterly EPS of $1.23 and revenue of $1.33 billion, both ahead of analyst expectations.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC had its price target cut by investment analysts at Scotia from $40.00 to $33.00 in a research report issued to clients and investors on Friday,BayStreet.CA reports. The brokerage presently has a "sector outperform" rating on the software maker's stock. Scotia's price objective would suggest a potential upside of 33.52% from the company's previous close.

A number of other brokerages also recently weighed in on OTEX. Royal Bank Of Canada cut their price objective on Open Text from $30.00 to $27.00 and set a "sector perform" rating on the stock in a research note on Friday, May 8th. Scotiabank set a $33.00 target price on Open Text in a research report on Friday. Citigroup lowered their price target on Open Text from $26.00 to $25.00 and set a "neutral" rating on the stock in a report on Friday, May 8th. Raymond James Financial set a $29.50 price objective on shares of Open Text and gave the stock a "market perform" rating in a research note on Thursday. Finally, Barclays upped their price objective on shares of Open Text from $25.00 to $27.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Three research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, Open Text presently has a consensus rating of "Hold" and a consensus target price of $32.29.

Open Text Stock Down 3.7%

Shares of OTEX stock traded down $0.94 on Friday, hitting $24.71. The company's stock had a trading volume of 1,939,602 shares, compared to its average volume of 2,162,387. The stock has a market capitalization of $5.98 billion, a price-to-earnings ratio of 12.04 and a beta of 1.03. Open Text has a fifty-two week low of $19.77 and a fifty-two week high of $39.90. The firm's fifty day moving average price is $23.03 and its 200-day moving average price is $23.60. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.94 and a quick ratio of 0.94.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last posted its earnings results on Thursday, August 6th. The software maker reported $1.23 EPS for the quarter, topping the consensus estimate of $1.02 by $0.21. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the prior year, the business posted $0.97 earnings per share. The business's quarterly revenue was up 2.9% on a year-over-year basis. Research analysts anticipate that Open Text will post 4.05 EPS for the current year.

Institutional Trading of Open Text

Several hedge funds and other institutional investors have recently bought and sold shares of OTEX. CIBC Private Wealth Group LLC acquired a new stake in Open Text during the third quarter worth about $33,000. Global Retirement Partners LLC bought a new stake in shares of Open Text in the 2nd quarter worth approximately $34,000. WealthCollab LLC grew its holdings in shares of Open Text by 39.5% during the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker's stock worth $48,000 after purchasing an additional 464 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in shares of Open Text by 5,096.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,611 shares of the software maker's stock worth $52,000 after purchasing an additional 1,580 shares in the last quarter. Finally, Osaic Holdings Inc. increased its position in shares of Open Text by 108.8% during the second quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker's stock valued at $52,000 after purchasing an additional 937 shares during the period. 70.37% of the stock is currently owned by institutional investors and hedge funds.

Open Text News Summary

Here are the key news stories impacting Open Text this week:

• Positive Sentiment: OpenText reported fourth-quarter revenue of $1.349 billion, up 2.9% year over year and above the $1.29 billion consensus estimate. Adjusted earnings per share of $1.23 exceeded expectations of $1.02. Cloud revenue increased 6.0% to $503 million, while fiscal-year cloud revenue reached $1.96 billion, up 5.5%. OpenText Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Profitability also improved: GAAP net income rose sharply, adjusted EBITDA reached $507 million with a 37.6% margin, and EPS increased from $0.97 in the prior-year quarter. These results may support the stock’s valuation and reinforce management’s focus on cloud and recurring revenue. Open Text Corporation 2026 Q4 Results Earnings Call Presentation
• Positive Sentiment: OpenText declared a quarterly dividend of $0.28 per share, payable September 18 to shareholders of record on September 4. The reported annualized yield is approximately 4.4%, which may appeal to income-oriented investors.
• Neutral Sentiment: The earnings presentation emphasized growing demand for trusted data and artificial-intelligence solutions. However, investors will likely look for evidence that AI-related demand translates into faster overall growth.
• Negative Sentiment: Fiscal 2027 revenue guidance of $5.1 billion to $5.2 billion was below the roughly $5.3 billion consensus estimate. First-quarter guidance of $1.2 billion to $1.3 billion was also at or below expectations, signaling limited near-term growth momentum.
• Negative Sentiment: Raymond James downgraded Open Text from “outperform” to “market perform,” adding pressure to the shares even after the quarterly earnings beat.

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

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