UPDATE: Citi Starts Open Text (OTEX) at Neutral

Citi initiated coverage on Open Text (NASDAQ: OTEX) with a Neutral rating and a price target of $36.00.

Analyst Walter Pritchard comments "OTEX is an adept consolidator of technologies around multiple markets it brings together under Enterprise Information Management (EIM). Value creation has come from optimizing under-monetized assets in underserved markets with acquisitions driving the bulk of earnings / cash flow growth. While we see some upside to Street accretion assumptions from recent ECD acquisition (and other 4 large deals), we see stock as already pricing in most of this upside with opportunity to create significantly more value as pushed into next FY. While we see some room for upside vs. street estimates (Citi FY18 EPS of $2.58 vs. Street’s ~$2.50), we note shares are up ~40% over last 12 mo, inline with M&A accretion. Strong position on “outskirts” of large tech Focusing on value creation Valuation fully reflecting ECD potential."

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 $34.02 yesterday.

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