Open Text Corp: A Buy Rating on Robust Long-Term Prospects and Attractive Valuation

Analyst Samad Samana of Jefferies maintained a Buy rating on Open Text (OTEX – Research Report), reducing the price target to $42.00.

Samad Samana has given his Buy rating due to a combination of factors including Open Text Corp’s recent performance and future prospects. Despite a modest revenue beat and earnings per share that met expectations, the adjustment of fiscal year 2026 targets to 2027 is noteworthy. This adjustment is largely due to customers choosing longer contract durations and an uptick in cloud bookings, which are seen as long-term positives for the company.
Furthermore, the increase in capital returns and the indication of a renewed focus on mergers and acquisitions contribute to the optimistic outlook. Samana also highlights that Open Text’s valuation remains attractive, citing a relatively low enterprise value to forecasted free cash flow ratio of 15 times for fiscal year 26. This signals that the stock may be undervalued, supporting the rationale behind the Buy rating.

In another report released on April 22, RBC Capital also maintained a Buy rating on the stock with a $53.00 price target.

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Open Text (OTEX) Company Description:

Open Text Corp. engages in the design, development, marketing and sales of enterprise information management software and solutions. It includes customer experience management (CEM), digital process automation, business network, and enterprise content management, discovery, security, and artificial intelligence (AI) and analytics solutions. It also offers consulting, managed, and learning services. The company was founded on June 26, 1991 and is headquartered in Waterloo, Canada.