Q: By my calculations, OTEX is trading at 8X forward earnings and 10% FCF yield. At current price it has a 3.5% dividend yield. According to TD Cowen's analysis the stock could see a 33% return over the next 12 months if it meets the low end of its forecast. So why are all the buy side analysts downgrading the stock or maintaining their hold rating? Isn’t it time to buy when there's blood on the street and you feel sick in your stomach? Has anything changed in its business fundamentals?
5i Research Answer:
OTEX is trading at 8X forward earnings and roughly a 9% free cash flow yield. It has a trailing...
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