Q: Hi folks, loved the report on DOCCKS with stats...just wondering how OTEX/t got added as you show 1 year Rev E at -8%, & 1 year EPS E is -12%....been a choppy 2024 & few years for Open Text, with regularly missing Q estimates....what did 5i like about Otex to include it in Canada's version of "Mag 7"....thanks, jb
5i Research Answer:
OTEX is one of the largest and most established tech companies in Canada, and despite its relative weakness over the past few years, we think its recent restructuring plan and 'OpenText 3.0' three-year plan to realign its workforce, focus on cloud-based solutions, AI, and cybersecurity, and increase its market share. It pays a good dividend yield, and we feel its cheap valuation and potential for a turnaround can add some value to the DOCCKS model portfolio.