10:23 AM EDT, 10/03/2025 (MT Newswires) -- National Bank of Canada Friday retained Open Text's ( OTEX ) outperform rating and US$45 price target.

OpenText recently announced the divestiture of its eDOCS solution, part of the company's analytics portfolio, for $163 million to NetDocuments.

The company plans to use the proceeds to reduce outstanding debt, supporting its strategy to focus on AI-driven information management while rationalizing non-core assets.

The transaction is expected to close by early 2026.

National Bank considers the sale price to be a reasonable valuation for the asset, saying that the deal had an estimated transaction valuation of 5.4x of the unit's 2025 sales.

"This quickly kicks off OpenText's pivot to refocus efforts on monetizing AI through its core offerings in secure information management," the bank said. "At the same time, we see pending divestitures also reducing the complexity of this story while providing the benefit of reducing the company's leverage."

Open Text ( OTEX ) traded at $37.79 per share at last look on Nasdaq.

Price: 52.65, Change: +0.07, Percent Change: +0.13