Open Text (OTEX) Investors Should Continue to Focus on Record Cash Flow - Scotiabank

Scotiabank maintains Sector on Outperform Open Text (NASDAQ: OTEX) price target of $45.00.

Analyst Paul Steep remains positive on the company following the OTEX EnFuse 2018 conference and sees the firm continuing to develop its definition of EIM and notes the firm remains positioned to further build on its security offerings through a combination of internal development and target M&A.

Further Steep comments "We believe investors should increasingly focus on Open Text's record cash flow and the introduction of a F2021 target for operating cash flow of $1 billion (compared with ~$792 million on a LTM basis at Q3). In our view, the $1 billion target appears most achievable through a combination of: (1) a return in M&A activity; and (2) increased use of automation to drive improved operating margins."

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 $34.65 yesterday.

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