Scotiabank lowered the firm’s price target on OpenText (OTEX) to $35 from $40 and keeps a Sector Perform rating on the shares. A slower than anticipated ramp in cloud growth and a tough year/year comparison in Q2 have led the company to reduce its FY25 revenues toward the low end of its outlook, the analyst tells investors. While Q1 saw a nice profit beat and strong adjusted EBITDA margins that are expected to be maintained in Q2, an increase in opex on typical seasonality has pushed margins lower in the second half of the year, the firm adds.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on OTEX: