A number of analysts have raised their share-price targets on Canadian software giant Open Text due to its impressive pipeline and strong first quarter performance, Reuters (News - Alert) reported on Thursday.

RBC Capital Markets, CIBC World Markets and at least three other brokerage houses recently elevated their price targets on Open Text stock in light of the company's growth potential.

GMP analyst Sera King told clients in a recent note that Open Text's strong partnerships with SAP, Microsoft and Oracle (News - Alert) as well as its burgeoning pipeline of prospective customers showcase the company's growth possibilities, according to Reuters.

"What's interesting is that the pipeline includes a growing number of new customers, setting the stage for a continuation of large deployments over the next 24 months," King wrote. GMP Securities recently upgraded Open Text stock from a "hold" to a "buy."

Canada's largest software company reported revenue of $263 million in the company's third quarter, which ended on March 31. The total represents a 23.6 percent increase over the previous year's third quarter. The strong performance was powered heavily by the company's licensing revenue, which increased by 37 percent to $67.8 million. Open Text's overall revenue beat out consensus Wall Street estimates by about 13 million, according to the Canadian Press.

Open Text's adjusted net income for Q3 was $52.5 million, or 90 cents per share, representing a boost of more than 30 percent compared to the same period of 2010.

"I am pleased with our performance this quarter," John Shackleton, President and Chief Executive Officer of OpenText, noted in a statement. "With strong sales in all geographies, we are seeing increased demand for both compliance based solutions and productivity centric applications that integrate workflow processes with ERP systems."

Open Text added to its market share earlier this year by acquiring smaller rival MetaStorm. The company also purchased document management software firm StreamServe toward the end of last year.