In the preceding three months, 8 analysts have released ratings for Open Text (NASDAQ:OTEX), presenting a wide array of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 2 | 6 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 2 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Open Text, presenting an average target of $39.62, a high estimate of $50.00, and a low estimate of $33.00. This upward trend is apparent, with the current average reflecting a 19.55% increase from the previous average price target of $33.14.
Decoding Analyst Ratings: A Detailed Look
The standing of Open Text among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Raimo Lenschow | Barclays | Raises | Equal-Weight | $39.00 | $33.00 |
| Daniel Chan | TD Cowen | Announces | Hold | $40.00 | - |
| Daniel Chan | TD Securities | Raises | Hold | $40.00 | $35.00 |
| Paul Steep | Scotiabank | Raises | Sector Outperform | $50.00 | $35.00 |
| Richard Tse | National Bank Financial Inc | Raises | Outperform | $45.00 | $34.00 |
| Paul Treiber | RBC Capital | Raises | Sector Perform | $35.00 | $30.00 |
| Kevin Krishnaratne | Scotiabank | Raises | Sector Perform | $35.00 | $30.00 |
| Samad Samana | Jefferies | Lowers | Hold | $33.00 | $35.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Open Text. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Open Text compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Open Text's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into Open Text's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Open Text analyst ratings.
About Open Text
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
A Deep Dive into Open Text's Financials
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Decline in Revenue: Over the 3M period, Open Text faced challenges, resulting in a decline of approximately -3.79% in revenue growth as of 30 June, 2025. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.2%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Open Text's ROE stands out, surpassing industry averages. With an impressive ROE of 0.72%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Open Text's ROA excels beyond industry benchmarks, reaching 0.21%. This signifies efficient management of assets and strong financial health.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.69, caution is advised due to increased financial risk.
What Are Analyst Ratings?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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