UPDATE: Versant Partners Downgrades Open Text; Lowers PT

According to a research report published this morning, Versant Partners has downgraded Open Text

from Buy to Neutral, and lowered PT from $70 to $62. In the report, Versant Partners said, "While partially telegraphed, license was still worse than our expectations – it fell 10% YoY despite the contribution from the Global 360 (closed on July 13, 2011) and Metastorm (closed on February 18, 2011) acquisitions. The primary cause of this shortfall was sales execution issues in North America and within the BPM group. In addition, the lack of integration of the BPM acquisitions further compounded sales efforts. We are concerned that management would embark on another acquisition (EasyLink) before fully addressing these issues. The company needs to execute on a clear vision that balances organic growth with strategic acquisitions - the latter more focused on platforms for growth." Open Text closed yesterday at $50.95.