Update shared on 18 Nov 2025
Fair value Increased 2.71%Analysts have raised their average price target for Open Text to approximately $40.45 from $39.39. This change reflects an improving profit outlook, sustained FY26 guidance, and expectations for AI-driven growth catalysts over the next several months.
Analyst Commentary
Recent analyst updates on Open Text reflect a range of perspectives on the company's valuation and growth prospects. Several firms have revised their price targets upward, citing the company's sustained guidance, ongoing AI initiatives, and the outlook for improved profitability. However, execution risks and near-term guidance caution some market participants.
Bullish Takeaways- Bullish analysts cite Open Text's consistent fiscal year guidance and expectations for a stronger performance in the second half. They note management's confidence despite some short-term headwinds.
- The rollout of new AI-driven solutions is seen as a catalyst for renewed growth and may help position Open Text as an emerging player in enterprise artificial intelligence.
- Recent investor discussions and channel checks suggest Open Text is regaining investor attention, with its growth narrative becoming clearer and more compelling.
- Multiple upward revisions in price targets, some to as high as $45, reflect optimism regarding long-term value creation and execution on strategic initiatives.
- Bearish analysts remain cautious due to below-consensus revenue and EBITDA outlooks for the near term. They attribute some softness to seasonal trends and uncertain macroeconomic conditions.
- While price targets have generally moved higher, some analysts have downgraded their ratings and point to limited upside following recent share appreciation.
- Concerns persist around execution risks, especially related to integrating new technologies and realizing the full potential of AI initiatives in a competitive software landscape.
What's in the News
- OpenText Core Content Management for SAP solutions is now certified for SAP S/4HANA Cloud Public Edition, establishing OpenText as an SAP Solution Extensions partner for document management in cloud ERP environments (Client Announcements).
- The company released new AI-powered cybersecurity capabilities with OpenText Cloud Editions 25.4, featuring advancements in behavioral analytics, identity management, automated remediation, and regulatory compliance (Product-Related Announcements).
- Open Text announced earnings guidance for Q2 FY26, expecting total revenue between $1.275 billion and $1.295 billion (Corporate Guidance, New or Confirmed).
- Significant share repurchase activities completed, with nearly 1.9 million shares bought back for $61.05 million as part of the ongoing buyback program (Buyback Tranche Update).
- Steve Rai appointed as Chief Financial Officer, effective October 6, 2025, bringing over 30 years of global finance and technology industry experience (Executive Changes, CFO).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $39.39 to $40.45, indicating a modest upward revision in fair value estimates.
- Discount Rate increased from 9.71% to 9.87%, reflecting a minor adjustment to perceived risk or cost of capital assumptions.
- Revenue Growth expectations have fallen slightly, decreasing from 1.38% to 1.27%.
- Net Profit Margin edged higher, moving from 16.02% to 16.13%.
- Future P/E ratio is up modestly, increasing from 13.03x to 13.21x. This suggests a slight upward shift in valuation multiples.
Disclaimer
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