Open Text (NASDAQ:OTEX) Given New $42.00 Price Target at Raymond James Financial

Open Text (NASDAQ:OTEX) (TSE:OTC) had its target price dropped by analysts at Raymond James Financial from $48.00 to $42.00 in a report issued on Friday,BayStreet.CA reports. The firm presently has an “outperform” rating on the software maker’s stock. Raymond James Financial’s price target indicates a potential upside of 70.03% from the stock’s current price.

A number of other analysts also recently commented on the stock. Royal Bank Of Canada dropped their target price on shares of Open Text from $33.00 to $30.00 and set a “sector perform” rating on the stock in a report on Friday. UBS Group set a $26.00 target price on Open Text in a report on Friday. National Bankshares set a $45.00 price objective on Open Text and gave the stock an “outperform” rating in a report on Thursday, October 23rd. Weiss Ratings reiterated a “hold (c+)” rating on shares of Open Text in a research note on Monday, December 29th. Finally, CIBC decreased their price target on Open Text from $40.00 to $37.00 and set a “neutral” rating for the company in a research note on Friday, January 16th. Four analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $36.46.

Open Text Stock Performance

Shares of NASDAQ OTEX traded up $1.91 during midday trading on Friday, hitting $24.70. 2,616,157 shares of the company’s stock were exchanged, compared to its average volume of 1,896,469. The company has a debt-to-equity ratio of 1.60, a current ratio of 0.87 and a quick ratio of 0.87. Open Text has a twelve month low of $22.44 and a twelve month high of $39.90. The stock’s 50 day moving average price is $31.28 and its 200-day moving average price is $33.46. The firm has a market cap of $6.22 billion, a P/E ratio of 12.96 and a beta of 1.08.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Wednesday, November 5th. The software maker reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $1.00 by $0.05. Open Text had a return on equity of 23.44% and a net margin of 9.60%.The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period last year, the company earned $0.93 earnings per share. The company’s quarterly revenue was up 1.5% compared to the same quarter last year. Equities research analysts anticipate that Open Text will post 3.45 EPS for the current year.

Institutional Investors Weigh In On Open Text

Large investors have recently bought and sold shares of the business. Sagard Holdings Management Inc. bought a new stake in shares of Open Text during the second quarter worth $30,000. CIBC Private Wealth Group LLC bought a new position in shares of Open Text in the 3rd quarter valued at about $33,000. MAI Capital Management boosted its stake in Open Text by 58.7% in the second quarter. MAI Capital Management now owns 1,595 shares of the software maker’s stock valued at $47,000 after acquiring an additional 590 shares during the last quarter. WealthCollab LLC boosted its position in shares of Open Text by 39.5% in the 2nd quarter. WealthCollab LLC now owns 1,640 shares of the software maker’s stock worth $48,000 after purchasing an additional 464 shares during the last quarter. Finally, Osaic Holdings Inc. grew its position in shares of Open Text by 108.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,798 shares of the software maker’s stock worth $52,000 after buying an additional 937 shares during the period. 70.37% of the stock is currently owned by institutional investors.

Open Text News Summary

Here are the key news stories impacting Open Text this week:

• Positive Sentiment: Q2 results topped estimates: OTEX reported EPS of $1.13 (vs. $1.04 consensus) and revenue around $1.32–1.33B, beating Street expectations — a primary catalyst for the stock’s strength. OpenText Reports Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Cloud momentum: Content Management cloud revenue grew ~18% and cloud organic growth continued (20 consecutive quarters), supporting the company’s transition to higher-margin recurring revenue. OpenText Reports Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Dividend boost: OTEX declared a quarterly dividend of $0.275 (annualized yield ~4.5%), payable March 20 to holders of record March 6 — increases yield/supports income-seeking buyers.
• Positive Sentiment: Analyst action: TD Securities upgraded the stock, which can attract momentum buyers and reinforce the positive reaction. Open Text (NASDAQ:OTEX) Upgraded at TD Securities
• Neutral Sentiment: Guidance roughly in line: Company refreshed Q3 and FY26 revenue ranges that sit near consensus (revenue guidance centered near $1.3B qtr / $5.2–5.3B FY), offering limited upside surprise from guidance alone.
• Neutral Sentiment: Street stance: Analysts’ consensus remains around a “Hold” — mixed opinions suggest limited broad-based upgrade momentum. Open Text Corporation (NASDAQ:OTEX) Given Average Recommendation of “Hold” by Analysts
• Negative Sentiment: Leverage & strategic uncertainty: Commentary (Seeking Alpha) warns persistent leverage and unclear capital-allocation strategy could limit multiple expansion despite operational wins. Open Text: A Different Picture Here
• Negative Sentiment: Profitability & cash flow headwinds: GAAP/net income and operating free cash flow declined year-over-year (several margins and FCF metrics weakened), and leverage (debt-to-equity ~1.6) remains a risk to valuation if cash conversion doesn’t improve. OpenText Reports Second Quarter Fiscal Year 2026 Financial Results

About Open Text

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company’s platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text’s product suite includes content services, business process management, customer experience management, analytics and security products.