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TSE:OTEX
Open Text (OTEX.TO)
29.47
+0.24 (0.82%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
380 watching
Financials 
Technical Analysis 0
BUY
BUY ON WEAKNESS
A darling in the space and he has been trying to buy it. They are Canada's leader in enterprise information management. It offers its customers great economies of scale and they have many opportunities to extract value in the cloud space. In their latest release they delivered great revenue and cash flow growth. If it ever becomes affordable he will buy and use options to ensure he can hold it for the long term. (Analysts’ price target is $62.00)
computer softwareprocessing
PAST TOP PICK
(A Top Pick Sep 09/19, Up 8%) They continue to grow by acquisition, adding some AI. It's been a great grower in recent years. Its valuation is low at only 10x operating cash flows with 12-14x earnings. Not a high-flyer like its tech peers, but he still likes it and will hold it.
John ZechnerOwned
computer softwareprocessing
STRONG BUY
Has long owned this cloud computing stock. It's acquisitive. 75% of revenues are recurring. Q1 results reflect the work-at-home trend has benefited them. They have 100 million+ users across the world with 90% of revenues outside Canada, namely the U.S. They do an amazing job of synergizing companies they buy. Over decades they outperform the Canadian tech sector. You can buy this and sleep at night.
Brian MaddenOwned
computer softwareprocessing
BUY ON WEAKNESS
It is always on their radar and he kicks himself for not buying on the recent sell off. Very much a leader in information management services, especially under the trend in working from home. He had an entry point in the lower $30s, so he will have to wait to buy on weakness. They picked up a few companies that have expanded their cloud margins and cross-selling opportunities.
computer softwareprocessing
PAST TOP PICK
(A Top Pick May 07/19, Up 12%) At the time he thought they would make an acquisition and they did, adding a cloud based company. They install and sell cloud services. As they continue moving into the cloud the multiples will continue to rise.
James TelfserOwned
computer softwareprocessing
TOP PICK
A large company with $15 billion marketcap. They are involved in data search and capture. The dividend is well covered with only a 21% payout ratio of cash flow. Recent quarterly reported a 13% sales growth. Earnings expected to grow by 14% next year. Yield 1.7% (Analysts’ price target is $62.21)
computer softwareprocessing
BUY ON WEAKNESS
It is involved in enterprise information management software. They are a darling in the space. Users of their software are the largest users in the space. They picked up some interesting companies to expand cloud revenues. Yesterday, they bought a company out of Quebec that offers a great cross-selling opportunity. He has a target of $43, but is looking to buy in the low $30s.
computer softwareprocessing
COMMENT
TOP PICK
They reported Q3 earnings last night and they were strong results. They do enterprise content and information management through site and cloud based delivery. They have 10,000 companies and 97% of revenue comes from outside Canada. Over 20 years their ROE has averaged over 14% -- triple the TSX average. They are partnering with Amazon web services. Boring tech can be beautiful. Yield 1.86% (Analysts’ price target is $62.51)
Brian MaddenOwned
computer softwareprocessing
BUY
On-premise and cloud based business tools that are not discretionary. It is a fairly innovative company and they grow by acquisition. The financial strength is good but there is a law suit regarding taxes. Longer term they should grow double digits. It has held up well in the selloff.
Brian MaddenOwned
computer softwareprocessing
TOP PICK
A cloud IT services company. Very profitable as a rapid growth by acquisition story, spending $6.2 billion in the last 5-6 years. Good valuation and are operating in a growing market. They have 10,000 unique clients in 100 countries, so little concentration risk. (Analysts’ price target is $69.52)
Brian MaddenOwned
computer softwareprocessing
BUY
He just bought a lot of this and likes tech, especially those that grow by acquiring like OTEX. It's been good at finding additional products to include in their packages. He likes this for the long-haul. Tech is a safe space in the coming 12-18 months. Canadian tech is cheaper than the U.S. FAANGs, though he owns Netflix and Disney.
Michael DecterOwned
computer softwareprocessing
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Allan Tong’s Discover Picks For growth, this Canadian IT stock deserves a look. It’s been overshadowed by mega-grower, Shopify, and the American tech titans. Year-to-date, OTEX has risen over 4%. Not bad, but tech stock specialist Kim Bolton sees opportunity for it to grow within the red-hot cloud computing space. True, OTEX trades at a PE of 43x, though that’s nothing compared to Shopify and Lightspeed POS. Read Top 4 BNN Stock Picks to Buy this Summer for our full analysis.