01:35 PM EDT, 03/15/2024 (MT Newswires) -- National Bank met investors with Open Text ( OTEX ) CEO / CTO Mark Barrenechea today.

Analyst Richard Tse learned Open Text's ( OTEX ) pending divestiture of AMC is on track to close by June 2024. The pending delevering event will put OpenText back onto more acquisitions.

Open Text ( OTEX ) is also committed to a meaningful operating leverage scale going into FQ4 (Jun); and is actively leaning into its AI portfolio (Aviator).

"All in, what we heard remains consistent with our investment thesis - and from a valuation standpoint, 8.4x F24 EV/EBITDA looks compelling against the relative growth potential with delevering being a further benefit to the equity holder. "

Maintain Outperform, US$60 target.

Price: 52.14, Change: -0.31, Percent Change: -0.59