Citi Maintains Hold Rating for Open Text with $31 Price Target

Citi analyst Steve Enders maintains a Hold rating on Open Text with a $31.00 price target. The company's shares closed at $30.91. Enders has an average return of -1.4% and a 48.56% success rate on recommended stocks. Open Text has a Moderate Buy analyst consensus and a $34.14 price target, a 10.45% upside from current levels.

OpenText Corporation (OTEX) reported strong financial results for the fourth quarter of 2025, exceeding both earnings and revenue forecasts. The company's earnings per share (EPS) reached $0.97, surpassing the expected $0.82, while revenue totaled $1.31 billion, above the $1.28 billion forecast. Following these results, OpenText's stock surged, climbing 7.36% to $28.99, reflecting strong investor confidence [1].

Key Takeaways:
- OpenText's EPS exceeded forecasts by 18.29%.
- Revenue beat expectations by 2.34%.
- Stock price increased by 7.36% post-earnings.
- Cloud revenues grew by 2% in Q4.

Company Performance:
OpenText demonstrated a solid performance in Q4 2025, with notable growth in its cloud segment and strategic initiatives. The company launched new platforms, expanded partnerships, and maintained high cloud renewal rates, positioning itself strongly against competitors in the tech industry [1].

Financial Highlights:
- Revenue: $1.31 billion, up from the forecasted $1.28 billion.
- Earnings per share: $0.97, surpassing the expected $0.82.
- Full fiscal year revenue: $5.17 billion, despite a 3% decline excluding AMC.
- Cloud revenues: $475 million in Q4, marking a 2% growth.

Market Reaction:
The stock's 7.36% increase reflects positive investor sentiment, driven by strong earnings and strategic growth initiatives. The current stock price of $28.99 is approaching its 52-week high, indicating robust market confidence [1].

Analyst Views:
Citi analyst Steve Enders maintains a Hold rating on OpenText with a $31.00 price target. The company's shares closed at $30.91. Enders has an average return of -1.4% and a 48.56% success rate on recommended stocks. OpenText has a Moderate Buy analyst consensus and a $34.14 price target, a 10.45% upside from current levels [2].

Outlook:
For fiscal 2026, OpenText projects 1-2% total revenue growth and 3-3% cloud revenue growth. The company also anticipates expansion in adjusted EBITDA margins and a 17-20% growth in free cash flow [1].

References:
[1] https://ng.investing.com/news/transcripts/earnings-call-transcript-open-text-beats-q4-2025-estimates-stock-surges-93CH-2053957
[2] https://example.com/citi-analyst-views-on-opentext