OpenText price target lowered to $36 from $38 at Citi

Summary of Key Points Core Viewpoint - Citi has lowered the price target for OpenText (OTEX) to $36 from $38 while maintaining a Neutral rating on the shares, indicating a cautious outlook on the company's performance in the current market environment [1]. Group 1: Company Adjustments - Citi adjusted its models in the application software group after discussions with management, reflecting a need to align expectations with the current market conditions [1]. Group 2: Market Environment - Companies are experiencing a stable but uncertain demand environment, with some positive impact from the reopening of the U.S. government, suggesting a mixed outlook for the sector [1]. Group 3: Investment Picks - Citi has identified Pegasystems (PEGA) as its new top pick, highlighting the company's leadership in artificial intelligence monetization [1]. - Additionally, Citi sees growth opportunities in Blackline (BL) and Workiva (WK), indicating a focus on companies with strong potential in the current market [1].