Q: Hi team,
Otex seems to have found support around the 200 day, is trading at approximately 8pe and has a +2% dividend.
Is there anything to like about this name and if so, when would you step in?
Otex seems to have found support around the 200 day, is trading at approximately 8pe and has a +2% dividend.
Is there anything to like about this name and if so, when would you step in?
5i Research Answer:
OTEX can be a beneficiary from the AI movement, with its opentext.ai and OpenText Aviator2 applications. OTEX is a leading company in the field of enterprise tech software and solutions, and we have recently added a small position to the Balanced Model Portfolio. Its small dividend is nice for investors, and it's grown its sales tremendously over the past year, and analyst estimates are positive for FY2024. Its valuation is decent, it has a good balance sheet, a good cash flow profile, and we think it can benefit from AI. Overall, we would be comfortable buying here as part of a long-term position.