UPDATE: PI Financial Downgrades Open Text to Neutral on Lower License Revenues

PI Financial lowered its rating on Open Text

from Buy to Hold and reduced its price target from $70 to $60. PI Financial commented, "License revenue was disappointing for the quarter with a decline of 14% to $55.7M compared to $65.0M in the same quarter last year. The decline in license revenue was attributable to the slowdown in Europe and lower government-related sales in North America. Lower license revenue can negatively impact future maintenance and professional services revenue. OpenText closed the EasyLink acquisition at the beginning of July for approximately $310M." Open Text closed at $53.95 on Wednesday.