Should You Go For This Mid Cap US Stock-OTEX

Acrobull UK Advisory Services Ltd.

November 20

2024

Name	Ticker	Sector/Industry	Market Cap	Risk Factor
Open Text Corporation	OTEX-NASDAQ	Technology	$7.594 Billion	Medium

Open Text Corporation engages in the provision of information management products and services. The company offers content services, including content collaboration and intelligent capture to records management, collaboration, e-signatures.

Recent Highlights

Strong Points- The company has recently announced that the OpenText Partner Network now has expanded access to sell OpenText's entire portfolio of solutions for information management, including Content Services, Experience Management, Security, IT Operations Management, and Developer tools along with accelerants, such as cloud, artificial intelligence, automation and analytics.

This is a major milestone for our Partner Network, following our acquisition of Micro Focus," said Sandy Ono, EVP and Chief Marketing Officer, OpenText.

First Quarter 2025 Financial Highlights

The company reported Total revenues of $1.27 billion, down 11.0% Y/Y or down 1.8% when adjusted for the AMC divestiture

The company reported Annual recurring revenues (ARR) of $1.05 billion, or down 8.4% Y/Y or down 1.1% when adjusted for the AMC divestiture

The company reported Cloud revenues of $457 million, up 1.3% Y/Y • Quarterly enterprise cloud bookings(1) of $133 million, up 10.3% Y/Y

The company reported Operating cash flows of ($78) million and free cash flows(2) of ($117) million, reflecting expected one-time tax payment for the AMC divestiture

The company reported Adjusted EBITDA(2) of $444 million, margin of 35.0%, above Company’s Q1 targets

Stock Observation- The company earnings have good and reported positive results in almost every segment of the financials. The RSI level for the stock is at 34 which shows close to oversold conditions. Investors looking for a safe stock which minimum gains may choose to invest in it.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy Rating for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$28.56 USD
Acrobull Recommendation	Buy
Target Price	$32.85 USD
RSI Level	14 Day RSI 33
Total Shares Outstanding	265.88 Million
Shares held by Insiders Risk Factor Stop Loss	2.10% Medium 5%