The Globe and Mail reports in its Friday, Nov. 1, edition that RBC Dominion Securities analyst Paul Treiber has lowered his recommendation for Open Text to "sector perform" from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Treiber slashed his share target by $12 to $33 (all figures U.S.). Analysts on average target the shares at $38.77. The Globe says Mr. Treiber believes it is increasingly unlikely Open Text's valuation multiple will "materially" change in the near term, pointing to "likely continued quarterly variability and a high bar for future organic growth." Mr. Treiber says in a note: "Our prior investment thesis assumed a valuation rerating as Open Text stabilized Micro Focus, achieved positive organic growth and increased FCF. However, the 11-per-cent decline in Open Text's shares today shows that the market is increasingly critical of gaps between actual and expected growth. Open Text is trading at 8.1 times NTM P/E [next 12-month price-to-earnings], well below its three-year pre-Micro Focus average of 13 times and peers at 37 times. The upside implied in our previous target was largely dependent on an assumed 40-per-cent valuation rerating in Open Text's valuation."