Added to YB: 2025-05-28
Pitch date: 2025-04-10
OTEX [bearish]
Open Text Corporation
-39.01%
current return
Author Info
No bio for this author
Company Info
Open Text Corporation designs, develops, markets, and sells information management software and solutions in North, Central, and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, and China.
Market Cap
$8.3B
Pitch Price
$24.00
Price Target
17.00 (-49%)
Dividend
3.27%
EV/EBITDA
8.70
P/E
17.65
EV/Sales
2.68
Sector
Software
Category
N/A
Open Text Corporation - $OTEX (short)
OTEX short: Canadian roll-up with structurally declining assets & heavy 3x debt post-Micro Focus acquisition. Industry contacts indicate CEO micromanagement causing talent loss, transformative $6.5B MF deal signals acquisition runway end. Projecting 4% revenue decline, 50bps EBITDA margin drop. $17 PT (-30%) at 6-6.5x 2026E EBITDA of $1.6B vs consensus $1.9B.
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