Citi In a review of quarterly earnings season for U.S. application software companies, Citi’s Steven Enders lowered his Open Text Corp. ( target to US$42 from US$44 with a “neutral” rating. The average is US$51.46.
“4Q23 results were largely split across our coverage with solid results in automation yet some softer results/guides within collaboration,” he said. “We view outlooks as relatively conservative with more of a de-risked view vs. other areas of our coverage, particularly for APPN, MNDY, and SMAR. While macro may remain a headwind, we see a favorable setup with valuation remaining low across the group (26th percentile over 5 years on EV/rev) and upside levers emerging from AI (ASAN, OTEX), packaging (BOX), and price increases (MNDY).”