UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Open Text Corporation Following Cordys Acquisition Announcement

In a report published Monday, BMO Capital Markets analyst Thanos Moschopoulos reiterated a Market Perform rating on

, and raised the price target from $66.00 to $67.00. In the report, BMO Capital Markets noted, “Open Text announced it has acquired Cordys, a vendor of business process management (BPM) software, for $33 million. We believe that the valuation paid was roughly 1x EV/sales, which, in our view, is likely reflective of Cordys' growth challenges; our understanding is that revenues have been range-bound since 2008. Cordys is Open Text's second BPM acquisition in recent weeks, following its $19 million acquisition of ICCM back in May. These acquisitions will supplement Open Text's existing BPM businesses, comprised of Metastorm and Global 360. Cordys adds cloud capability to Open Text's BPM portfolio, as well as developer tools that may help Open Text further expand its partner ecosystem (Cordys partners include Atos, Capgemini, Cognizant and CSC).” Open Text Corporation closed on Friday at $68.38.