The Globe and Mail reports in its Friday edition that National Bank analyst Richard Tse has lowered his recommendation for Open Text to a "sector perform" recommendation from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Tse has an unchanged $38 share target (all figures U.S.). Analysts on average target the shares at $40.46. Mr. Tse issued his rating downgrade "based on a view that this former acquisition growth story is pivoting toward a more challenging organic growth strategy." Mr. Tse says in a note: "While we believe the change in strategy toward organic growth is admirable, an aspirational organic growth target of 2 to 4 per cent in F27 makes it challenging to see a material valuation rerating. Our view is that a 2.9 times leverage ratio is fuelling this strategy shift, and it's our expectation that once the company delevers enough, it will tack back toward acquisitions. In the interim, we think driving organic growth will be challenging given the company's broad product portfolio. ... Bottom line, we think this shift in strategy to organic growth will be challenging given the broad product portfolio where we've seen limited success for similar shifts in the past."