Gold prices edge up amid Fed rate cut hopes; US-Russia talks awaited
Investing.com - Jefferies downgraded Open Text (NASDAQ:OTEX) from Buy to Hold and lowered its price target to $33.00 from $35.00 on Tuesday. The company, currently trading at $30.22, maintains impressive gross profit margins of 75.9% and has demonstrated strong dividend commitment with 13 consecutive years of payments.
The rating change follows the announcement that longtime CEO Mark Barrenechea will no longer serve in his leadership roles at the company, which comes after the recent departure of CFO Chadwick Westlake.
Open Text has made multiple new leadership appointments and stated it is exploring "portfolio-shaping opportunities" according to Jefferies.
The research firm noted that while it had previously been constructive on Open Text based on valuation considerations, the current uncertainty regarding the future direction of the business and its leadership prompted the downgrade.
Jefferies acknowledged that these changes could potentially unlock value for the company, but cited the leadership vacuum as the primary reason for its more cautious stance on the stock.
In other recent news, OpenText Corporation reported impressive financial results for the fourth quarter of 2025, surpassing both earnings and revenue forecasts. The company’s earnings per share reached $0.97, beating the expected $0.82, while revenue totaled $1.31 billion, exceeding the $1.28 billion forecast. Barclays (LON:BARC) responded to this strong performance by raising its price target for OpenText to $33 from $29, maintaining an Equalweight rating. The research firm noted that OpenText’s fourth-quarter performance might signify a turning point, highlighting it as the company’s highest top-line beat since the third quarter of 2023. Additionally, OpenText announced a leadership change with the appointment of James McGourlay as Interim Chief Executive Officer, succeeding Mark J. Barrenechea. McGourlay, a 25-year veteran of the company, previously served as Executive Vice President of International Sales. These developments reflect significant changes and achievements within OpenText, capturing the attention of investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.