Why Open Text (OTEX) Hit An All-Time High Today

NEW YORK (TheStreet) -- Open Text  (OTEX) hit an all-time high of $104.21 on Friday after the company announced second-quarter earnings that beat estimates. 

The Canadian software company reported revenue of $363.5 million, up 3% year-over-year and above the consensus estimate of $352.5 million. Excluding items, the company earned $1.58 per share, beating estimates of $1.50 for the quarter.

Open Text also acquired GXS Group, a company that provides cloud integration services among businesses, for $1.17 billion in a deal announced in November. The deal became complete about one week ago.

The company also said it would split its stock 2-for-1.

RBC Capital raised its target price on the stock to $120 from $110. "OpenText went beyond most investors' expectations, delivering a healthy quarter, and calling for faster-than-expected synergies on the GXS acquisition," the report notes.

TheStreet Ratings team rates OPEN TEXT CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate OPEN TEXT CORP (OTEX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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