Barclays analyst Raimo Lenschow maintains $Open Text (OTEX.US)$ with a hold rating, and adjusts the target price from $36 to $34.
According to TipRanks data, the analyst has a success rate of 48.6% and a total average return of 1.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Open Text (OTEX.US)$'s main analysts recently are as follows:
After a 'mixed' Q1 report, expectations are that the shares may experience a downturn in the near term, given that Q1 sales and Q2 guidance fell short of consensus expectations. The company is actively investing to stimulate a reacceleration; however, evidence of enhanced sales performance will be necessary to attract increased investor interest.
The previous expectation for OpenText's valuation was a positive re-rating as the company stabilized its Micro Focus acquisition, showed signs of positive organic growth, and enhanced free cash flow. Nevertheless, the post-earnings 11% share decline indicates that the market is scrutinizing the discrepancies between real and anticipated growth. Given the probable persistence of quarterly fluctuations and the challenging threshold for future organic growth, it is now anticipated that OpenText's valuation multiple may not undergo significant alterations.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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