OpenText initiated with a Buy at Jefferies

Jefferies initiated coverage of OpenText with a Buy rating and $45 price target. The firm expects the company to deliver low-single-digit organic revenue growth with incremental margin expansion allowing free cash flow to scale to $1.25B or more by FY26, the analyst tells investors in a research note. Jefferies adds that as OpenText’s “solid fundamental picture” becomes clearer, the stock’s valuation discount relative to its peers should also narrow.