Open Text Corp T.OTEX

Alternate Symbol(s): OTEX

Technology Software - Application

OpenText Corporation is a Canada-based information management company, which provides software and services. The Company’s comprehensive Information Management platform and services provide secure and scalable solutions for global companies, small and medium-sized businesses (SMBs), governments and consumers around the world. It has a complete and integrated portfolio of information management solutions delivered at scale in the OpenText Cloud, enabling organizations master modern work, automate application delivery and modernization, and optimize their digital supply chains by bringing together content cloud, cybersecurity cloud, business network cloud, its operations management cloud, application automation cloud and analytics and artificial intelligence cloud. The Company’s solutions range from connecting digital supply chains to managing human resource processes to driving better information technology service management in manufacturing, retail, and financial services.

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Open Text Corp

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Post by retiredcfon Jul 22, 2020 8:02am

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Post# 31300565

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That's obviously a US$ target. GLTA

Canadian software consolidators may experience some headwinds, but still well positioned to compound capital. Canadian software consolidators like GIB.A, CSU, and OTEX may experience a modest deceleration in organic growth, though the magnitude is expected to be limited, given their high mix of recurring revenue. Reduced costs are likely to help mitigate the impact of lower organic growth on profitability and cashflow. We believe the Canadian software consolidators are more likely to deploy higher amounts of capital on acquisitions during periods of financial and economic duress. For example, CSU deployed a larger amount of capital on acquisitions Q2 than Q1. While the Canadian software consolidators may experience deceleration in organic growth, we believe cashflow would remain resilient, which helps finance acquisitions, where these businesses have created the vast majority of shareholder value over time. The Canadian software consolidators remain core holdings in the Canadian technology sector, in our view. Our price target on CSU moves from C$1700.00 to C$1900.00, and our price target on OTEX goes from $45.00 to $48.00.