RBC Capital analyst Paul Treiber downgrades $Open Text (OTEX.US)$ to a hold rating, and adjusts the target price from $45 to $33.
According to TipRanks data, the analyst has a success rate of 65.3% and a total average return of 12.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Open Text (OTEX.US)$'s main analysts recently are as follows:
The shares of OpenText are projected to face a near-term decline after a 'mixed' Q1 report, with Q1 sales and Q2 forecasts not meeting consensus expectations. The company's investment in organizational growth to stimulate reacceleration is noted, yet investors are anticipated to seek evidence of enhanced sales execution before increasing their engagement with the stock.
The previous investment thesis, which projected that OpenText would experience a valuation re-rating through the stabilization of Micro Focus, attainment of positive organic growth, and a rise in free cash flow, is being reconsidered. Post-earnings, the company's shares have seen an 11% decline, indicating that the market is increasingly scrutinizing the discrepancy between actual and anticipated growth. Given the probable persistence of quarterly variability and the challenging expectations set for future organic growth, it is now anticipated that OpenText's valuation multiple may not undergo significant changes.
Note:
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