
Open Text (OTEX) Stock Forecast & Price Target
Open Text (OTEX) Analyst Ratings
Bulls say
OpenText Corp reported a 10% year-over-year increase in enterprise cloud bookings, reaching $772 million in FY25, which underscores the company's growing demand in the digital and cloud-based information management sector. Additionally, the cloud revenue from DevOps and Open Source Management (OSM) segments also experienced a significant rise of over 10% year-over-year in FY25, indicating robust performance within key business areas. This growth reflects OpenText's strong position in providing scalable, secure solutions through its comprehensive Information Management platform, particularly within the lucrative U.S. market.
Bears say
Open Text Corp faces challenges with projected declines in its Application Development and Maintenance (ADM) product group, which is expected to decrease by 0% to 5% annually over the medium term. The company is currently experiencing significant leverage, with a net debt to EBITDA ratio of 2.9x, which could decline to 2.3x if certain businesses are sold at 2x sales, indicating potential financial strain. Additionally, the mid-point of the FY26 guidance suggests organic growth expectations that are below consensus, contributing to concerns about the company's future performance.
This aggregate rating is based on analysts' research of Open Text and is not a guaranteed prediction by Public.com or investment advice.
Open Text (OTEX) Analyst Forecast & Price Prediction
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