BUZZ-OpenText Corp: Brokerages cut price targets

Wed Apr 29, 2015 10:42am EDT
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** Canadian business-software maker's shares down 7.7 pct at C$61.50; U.S.-listed shares down 7 pct at $51.39

** At least five brokerages cut price targets after company reported lower-than-expected Q3 profit and revenue

** Susquehanna Financial Group cuts price target to $48 from $62, RBC to $55 from $60, Dundee to $65 from $68, BMO Capital Markets to $51 from $57

** CIBC cuts price target to $63 from $70, rating to "sector performer" from "sector outperformer"

** Median price target $60.50 - Thomson Reuters data

** "We believe OTEX is struggling to deliver sustained organic license growth amidst shifting customer preferences for cloud offerings ...," Susquehanna analysts write

** Bigger issues are that OpenText competes in several mature markets and has been spending less on R&D - BMO analysts

** Of 14 analysts covering the stock, five have "hold" and nine have "buy" or higher rating

** Up to Tuesday's close, company's Canada-listed shares had risen 24 pct in 12 months, while its U.S.-listed shares gained 13 pct