UPDATE: BMO Capital Maintains Market Perform Rating, Lowers PT for OpenText
In a report published earlier today, BMO Capital Markets maintained its Market Perform rating for OpenText Corporation (NASDAQ: OTEX) but lowered its price target from $63.00 to $56.00.
BMO Capital said in its report “This was clearly a disappointing quarter, with licences down 16% y/y on a constant-currency organic basis, based on our estimates. Management didn't provide any guidance for Q4/12 other than noting that there should be some q/q improvement, but based on its tone and the fact that the licence weakness seems to have been caused by internal structural issues, we're not expecting to see the type of sharp snapback that SAP, for example, has guided for. We believe management is taking the right steps to address the issues, but expect that it'll take time for this to show up in the numbers and believe that growth will remain challenging in the near term.”
OpenText Corporation closed at $53.44 yesterday.
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