OpenText downgraded to Sector Perform from Outperform at National Bank

National Bank downgraded OpenText to Sector Perform from Outperform with an unchanged price target of $38. The company’s former acquisition growth story is pivoting towards a more challenging organic growth strategy, the analyst tells investors in a research note. The firm believes the change in strategy towards organic growth is “admirable,” but says “an aspirational organic growth target” of 2%-4% in fiscal 2027 “makes it challenging to see a material valuation re-rating.”