A bullish thesis on Open Text Corporation argues the enterprise software firm is deeply undervalued following post-Micro Focus weakness, with a refreshed board and new CEO driving restructuring and portfolio simplification. The company is pruning non-core assets from the Micro Focus acquisition, targeting 15 to 20 percent revenue divestiture to improve organic growth into low to mid single digits. Financially, OpenText trades at decade-low EV/EBITDA multiples while generating strong free cash flow, with FCF yield exceeding 18 percent or more than 4 dollars per share, and disciplined capital allocation focused on debt reduction and buybacks. The bull case supports a re-rating toward historical 10x EBITDA multiples as growth stabilizes, implying a price target above 55 dollars per share and over 100 percent upside from current levels.
Open Text CorpBull thesis argues OpenText is deeply undervalued with over 100% upside, citing restructuring, FCF yield >18%, and potential re-rating to 10x EBITDA.
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