Raymond James Financial Cuts Open Text (NASDAQ:OTEX) Price Target to $42.00

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

A number of other research firms also recently weighed in on OTEX. National Bankshares set a $45.00 price target on Open Text and gave the stock an “outperform” rating in a research report on Thursday, October 23rd. Zacks Research downgraded shares of Open Text from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. TD Securities raised shares of Open Text to a “hold” rating in a research report on Monday. Royal Bank Of Canada lowered their target price on Open Text from $33.00 to $30.00 and set a “sector perform” rating on the stock in a research report on Friday. Finally, Barclays set a $30.00 price target on Open Text and gave the company an “equal weight” rating in a research report on Friday. Four analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $36.46.

Open Text Stock Up 8.4%

OTEX stock traded up $1.91 during trading hours on Friday, reaching $24.70. 2,616,157 shares of the stock were exchanged, compared to its average volume of 1,896,469. The firm’s 50-day moving average is $31.28 and its 200-day moving average is $33.46. Open Text has a 12 month low of $22.44 and a 12 month high of $39.90. The company has a market cap of $6.22 billion, a price-to-earnings ratio of 12.96 and a beta of 1.08. 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 (NASDAQ:OTEX) (TSE:OTC) last posted its quarterly earnings data on Wednesday, November 5th. The software maker reported $1.05 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts’ expectations of $1.27 billion. During the same period in the prior year, the firm earned $0.93 earnings per share. Open Text’s revenue for the quarter was up 1.5% compared to the same quarter last year. On average, equities research analysts expect that Open Text will post 3.45 earnings per share for the current year.

Hedge Funds Weigh In On Open Text

Several large investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its holdings in shares of Open Text by 75.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,437,335 shares of the software maker’s stock worth $36,307,000 after buying an additional 619,527 shares during the period. United Services Automobile Association acquired a new stake in Open Text during the first quarter worth approximately $213,000. Callan Family Office LLC bought a new stake in shares of Open Text during the second quarter worth approximately $250,000. Vest Financial LLC grew its position in shares of Open Text by 8.2% in the second quarter. Vest Financial LLC now owns 13,769 shares of the software maker’s stock valued at $402,000 after purchasing an additional 1,045 shares during the last quarter. Finally, Sequoia Financial Advisors LLC bought a new position in shares of Open Text during the second quarter worth approximately $268,000. 70.37% of the stock is owned by institutional investors.

Key Stories Impacting Open Text

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

Open Text Company Profile

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.