Open Text (OTEX) Price Target Reduced by $3

Open Text Corporation (NASDAQ:OTEX) is included among the 7 Best Non-REIT Dividend Stocks to Invest in.

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Open Text Corporation (NASDAQ:OTEX) develops software that helps large organizations manage information securely and put it to work across cloud, security, and AI workflows. The business leans heavily on recurring revenue from subscriptions and support, which can help smooth results when customer spending becomes uneven.

On January 16, CIBC analyst Stephanie Price cut her price target on Open Text Corporation (NASDAQ:OTEX) to $37 from $40 and kept a Neutral rating. She said the stock is likely to stay in focus this quarter after the company issued weaker-than-expected Q2 guidance in the prior period. Attention now shifts to Q3, where the Street is looking for about 2% growth. CIBC also expects investors to watch closely for updates on potential non-core asset sales.

OpenText continues to push deeper into cloud services and secure information management tied to AI. Enterprise customers still need better governance, stronger security, and more automation as data volumes grow. At the same time, spending on enterprise software can slow, competition remains intense, and integrating past acquisitions requires ongoing discipline.

Tom Jenkins, Executive Chair at OpenText, has laid out a plan to divest non-core business units, potentially trimming up to 20% of company revenue. The aim is to sharpen the company’s focus on content that can help train agentic AI systems. Jenkins has said the decision is not driven by short-term demand, but by a more cautious approach to operations.

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