Jefferies downgrades Open Text to 'hold' rating on uncertainty

Jefferies downgrades Canada-based software and services provider Open Text OTEX.O to "hold" from "buy" rating, citing uncertainty over the future of the business after leadership transition

OTEX announced that CEO Mark Barrenechea will no longer serve in his leadership roles, effective immediately

"OTEX is a large organization with a deep bench, but the lack of a permanent CEO leaves uncertainty around what the long-term strategic direction of the business looks like" - Jefferies

Brokerage cuts PT to $33, which still represents a 9% upside to stock's last close

1 of 13 brokerages rate the stock "buy", 12 "hold"; their median PT is $33 - LSEG data

As of last close, stock up ~6.7% YTD