Open Text Corp
TSX:OTEX
Intrinsic Value
The intrinsic value of one
OTEX
stock under the Base Case scenario is
66.02
CAD.
Compared to the current market price of 32.87 CAD,
Open Text Corp
is
Undervalued by 50%.
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Fundamental Analysis
Large-scale acquisitions like Micro Focus may strain operational capacity and risk diluting near-term earnings if integration challenges and cultural mismatches arise.
OpenText’s reliance on debt to fund major acquisitions could sap free cash flows, limiting its ability to invest in R&D or pursue further strategic deals.
Increasing competition from tech giants with bundled cloud services and niche software providers that offer specialized solutions may pressure OpenText’s pricing and margins.
With the Micro Focus acquisition, OpenText strengthens its enterprise reach and cross-selling opportunities, amplifying its ability to offer end-to-end information management solutions.
The company’s extensive subscription- and maintenance-based revenue streams provide a predictable cash flow profile, allowing continued investments in product innovation.
As organizations grapple with surging volumes of unstructured data, the demand for secure, compliant content services is poised to grow, favoring OpenText’s market-leading offerings.
Revenue & Expenses Breakdown
Open Text Corp
Earnings Waterfall
Open Text Corp
Wall St
Price Targets
OTEX Price Targets Summary
Open Text Corp
According to Wall Street analysts, the average 1-year price target for
OTEX
is 55.08 CAD
with a low forecast of 54.54 CAD and a high forecast of 56.7 CAD.
The intrinsic value of one
OTEX
stock under the Base Case scenario is
66.02
CAD.
Compared to the current market price of 32.87 CAD,
Open Text Corp
is
Undervalued by 50%.
