UPDATE: Stifel Nicolaus Reduces PT to $61 on OpenText; Execution Issues

Stifel Nicolaus lowers its price target from $66 to $61 on Buy-rated OpenText

as execution issues weigh on Q3 license revenue. Stifel Nicolaus comments, "OpenText reported 3Q12 revenue of $292mn, missing our $305mn (consensus $301mn). …The 3Q revenue miss was attributed to OpenText execution issues in North America, in its recently acquired BPM businesses, and not to competitive take-aways. Management also cited an accumulated deficit in sales capacity. Part of these execution issues are related to the integration of the BPM salesforce into OpenText, which disrupted 3Q performance." OTEX closed at $53.44 on Tuesday.