UPDATE: BMO Capital Upgrades Open Text (OTEX) to Outperform

September 13, 2016 7:20 AM EDT
Get Alerts OTEX Hot Sheet
Price: $63.40 +1.38%

Rating Summary:
    11 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - September 13, 2016 8:56 AM EDT)

BMO Capital upgraded Open Text (NASDAQ: OTEX) from Market Perform to Outperform with a price target of $73. The change followed its agreement to acquire Dell EMC's Enterprise Content Division (ECD).

"We've upgraded Open Text to Outperform following the announcement of its acquisition of EMC's Enterprise Content division, based on the significant synergies that we anticipate from the deal," said BMO's Thanos Moschopoulos.

The analyst added, "While organic growth might remain a challenge for the combined business, in our view the cost synergy story alone should be sufficient to drive further upside to the share price over the next 12-18 months (particularly when coupled with the synergies from the HP assets). On a preliminary basis, we estimate that the deal will be 17%-19% accretive to FY2018 adj. EPS."

For an analyst ratings summary and ratings history on Open Text click here. For more ratings news on Open Text click here.

Shares of Open Text closed at $65.15 yesterday.

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