OpenText downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Thanos Moschopoulos downgraded OpenText to Market Perform from Outperform with a price target of $38, down from $50. The company’s fiscal Q3 results were roughly in line, while its preliminary fiscal 2025 guidance was significantly weaker than expected, the analyst tells investors in a research note. The firm says that while the stock’s valuation is undemanding, OpenText’s plans to prioritize capital return and acquisitions at the expense of further deleveraging, coupled with its subdued organic growth, will constrain the opportunity for near-term multiple expansion.