Scotiabank analyst Kevin Krishnaratne maintains $Open Text (OTEX.US)$ with a hold rating, and adjusts the target price from $40 to $35.
According to TipRanks data, the analyst has a success rate of 61.7% and a total average return of 9.6% 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 may face near-term pressures following a 'mixed' Q1 report, with Q1 sales and Q2 guidance falling short of consensus expectations. The company is channeling investments throughout its operations to stimulate a pickup in growth, yet the market is likely to seek evidence of enhanced sales performance before showing increased interest in the stock.
Initial assessments suggested that OpenText's market valuation would improve as it stabilized Micro Focus, recorded positive organic growth, and boosted free cash flow. Yet, the company's shares saw an 11% drop after earnings reports, reflecting the market's intensifying scrutiny over discrepancies between actual and anticipated growth. Given the prospects of ongoing quarterly fluctuations and stringent expectations for future organic growth, it's now presumed that OpenText's valuation multiple may remain relatively unchanged.
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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