OpenText shares are undervalued, says TD Securities

TD Securities says that following the divestment of the Application Modernization and Connectivity business, OpenText will have significantly less leverage, providing it the opportunity to accelerate organic growth with minimal impact on cash flow. The firm believes the shares are undervalued. OpenText is expected to have lower leverage and potentially higher organic growth, with minimal impact to cash flow, after selling the business, the analyst tells investors in a research note. TD keeps a Buy rating on the shares with a $54 price target.