Barclays has adjusted its outlook on OpenText (OTEX, Financial), reducing the stock's price target from $36 to $29. Despite maintaining an Equal Weight rating, the firm does not foresee the company's upcoming first-quarter earnings as a significant trigger for movement within the U.S. software sector.
According to the latest analysis, market conditions for OpenText appear softer than expected, but not critically so. Investors are anticipated to place greater emphasis on the company's future guidance rather than quarterly performance. Barclays highlights that management teams are unlikely to significantly alter projections in Q1 due to its limited impact compared to subsequent quarters.
The firm suggests that any substantial shifts or developments within the sector might not materialize until the second quarter, leaving the market in a state of anticipation for the time being.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Open Text Corp (OTEX, Financial) is $35.19 with a high estimate of $48.00 and a low estimate of $31.00. The average target implies an upside of 37.94% from the current price of $25.51. More detailed estimate data can be found on the Open Text Corp (OTEX) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Open Text Corp's (OTEX, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Open Text Corp (OTEX, Financial) in one year is $43.97, suggesting a upside of 72.36% from the current price of $25.51. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Open Text Corp (OTEX) Summary page.
