After recently posting quarterly results, National Bank Financial analyst Richard Tse is staying bullish on Canadian software company\u00a0OpenText (OpenText Stock Quote, Chart, News, Analysts, Financials TSX:OTEX), maintaining an \u201cOutperform\u201d rating and target price of $60.00\/share for a projected return of 19.7 per cent in an update to clients on Thursday. Founded in 1991 and headquartered in Waterloo, Ont., OpenText designs, develops, markets and sells information management software and solutions, primarily competing in the Enterprise Information Management (EIM) space. The company's offerings help facilitate collaboration, sharing, storing and retrieving of information (documents, emails, tasks) for individuals, project teams and organizations. Tse\u2019s latest analysis comes after OpenText reported first quarter fiscal 2022 numbers, which Tse noted to be in line with expectations. \u201cOpenText has shifted its focus to organic growth in light of heightened valuations in the sector for M&A,\u201d Tse said in his report, referencing the company\u2019s organic revenue growth. \u201cWhile that may not appear to represent a material organic growth rate in the context of the IPO names over the past 18 months, it\u2019s considerable for OpenText considering a history that\u2019s lacked organic growth given the company\u2019s scale, maturity and focus on acquisitions. But with acquisitions still being the primary growth driver long term \u2013 we see the execution on organic growth converting option value in this name.\u201d The company\u2019s fiscal Q1 was headlined by $832.2 million in revenue, beating the consensus projection of $824 million and the National Bank projection of $826 million. In particular, Tse noted that the company executed organic revenue growth of 3.5 per cent on a year-over-year basis, with most of it being recurring revenue from Cloud Services and Customer Support. (All figures in US dollars.) In particular, Cloud Services revenue increased 4.6 per cent year-over-year to $356.6 million in the quarter, while license revenue came in at $73.5 million, well above the National Bank estimate of $65.1 million and representing a 5.8 per cent year-over-year increase. Meanwhile, the company\u2019s EBITDA came in at $323 million for the quarter for a margin of 38.9 per cent, beating the National Bank projection of $308 million with a 37.3 per cent margin, as well as the consensus projection of a 38.1 per cent margin. That performance translated into CFO of $189.7 million and FCF of $163 million, with Tse noting that the company remains highly disciplined in terms of driving accretive acquisitions without overextending its balance sheet. "OpenText is leading our customers on their path to digitalization as they shift their work from productivity to creativity. Organizations across the globe trust the OpenText Cloud to deliver greater flexibility, agility and scale to meet the challenges of today's distributed work environment,"\u00a0 said Mark J. Barrenechea, OpenText CEO & CTO in the company\u2019s November 4 press release. "The OpenText Cloud uniquely positions us to win customers and take leadership in each of our markets as we empower businesses of all sizes to master modern work, power modern experiences, digitize supply chains, strengthen cyber resilience and build the API economy." Tse sees the company\u2019s financial growth maintaining a modest track over the next couple years, forecasting 1.6 per cent growth in 2022 revenue to $3.44 billion, an improvement over the reported $3.39 billion in 2021. From there, Tse forecasts continued improvement in 2023 to a projected $3.55 billion, good for potential year-over-year growth of 3.1 per cent. Meanwhile, Tse foresees the company\u2019s EBITDA remaining relatively stable in that timeframe, forecasting a minimal dip from the reported $1.32 billion and a 38.8 per cent margin in 2021 to a projected $1.31 billion and 38 per cent margin in 2022, then stepping up to $1.35 billion in 2023, with the margin remaining at 38 per cent. From a valuation multiple standpoint, Tse\u2019s estimates show modest improvement, with the EV\/Sales multiple dropping from the reported 4.7x in 2021 to a projected 4.6x in 2022, then to a projected 4.4x in 2023. Meanwhile, the EV\/EBITDA multiple remains level at 12x in 2021 and 2022, then dropping slightly to 11.7x in 2023. The company\u2019s EPS position also appears to be improving, with a projected jump to $3.54\/share in 2022 from $3.39\/share in 2021, then moving to a projected $3.56\/share in 2023. Consequently, the P\/E multiple is projected to drop from the reported 15x in 2021 to a projected 14.4x in 2022, then to a projected 14.3x in 2023. \u201cOTEX remains one of our favourite \u2018legacy\u2019 names,\u201d Tse said. \u201cWhile the market sentiment has shifted to favour high (organic) growth stories, we continue to see strong relative value with compelling defensive attributes in OTEX.\u201d Overall, OpenText\u2019s stock price has risen by 13.6 per cent on the NASDAQ in 2021, hitting a high point of $54.98\/share on September 1.