UPDATE: BMO Capital Upgrades Open Text (OTEX) to Outperform
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(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."
Shares of Open Text closed at $65.15 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Raises Price Target on ManpowerGroup (MAN) Following 3Q Surprise
- UPDATE: Seaport Global Securities Starts Canadian Pacific Railway Limited (CP) at Buy
- Jefferies Raises Price Target on FMC Technologies (FTI) After Adjusting Estimates
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Upgrades
Related EntitiesBMO Capital, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!