TIBCO Software Downgraded by FBN Securities to Sector Perform (TIBX)

TIBCO Software (NASDAQ: TIBX) was downgraded by research analysts at FBN Securities from an “outperform” rating to a “sector perform” rating in a report released on Friday, TheFlyOnTheWall.com reports.

The analysts wrote, “The company is beset by multiple challenges: 1.) SOA/core infrastructure declined (for the third quarter in a row) to 45% of rev. from 57% the year before, so we calculate that this segment declined around 25% Y/Y (vs. declines of 14-15% Y/Y the prior two quarters; TIBX appointed Raj Verma to head this segment in N. America in late October, but it appears that it will take more time for infrastructure to gain traction), 2.) Business process management (BPM) declined to 8% of rev. from 10% the year before (so two of TIBX’s segments, totaling 53% rev., are declining), 3.) large deal activity worsened noticeably (there were only 12 deals over $1M [albeit two of these were $5M+ deals], down 40% from 20 such deals a year before, 4.) EMEA (36% rev.) weakened (TIBX concedes that it does not have good leadership in the UK right now), 5.) its financials vertical (its largest one at 22% rev.) declined by 8% Y/Y (this is vs. flat in FQ4 and 18% growth in FQ3), and 6.) competitive pressure (from IBM and Oracle with ‘good enough’ technology has picked up.”

Shares of TIBCO Software (NASDAQ: TIBX) traded down 15.32% during mid-day trading on Friday, hitting $19.62. TIBCO Software has a 52 week low of $18.95 and a 52 week high of $34.67. The stock’s 50-day moving average is currently $22.82. The company has a market cap of $3.150 billion and a P/E ratio of 32.18.

TIBCO Software (NASDAQ: TIBX) last posted its quarterly earnings results on Thursday, March 21st. The company reported $0.18 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $0.18. The company had revenue of $237.80 million for the quarter, compared to the consensus estimate of $242.46 million. During the same quarter in the prior year, the company posted $0.20 earnings per share. The company’s quarterly revenue was up 5.4% on a year-over-year basis. Analysts expect that TIBCO Software will post $1.21 EPS for the current fiscal year.

TIBX has been the subject of a number of other recent research reports. Analysts at BMO Capital Markets cut their price target on shares of TIBCO Software from $22.00 to $20.00 in a research note to investors on Friday. They now have a “market perform” rating on the stock. Separately, analysts at Jefferies Group raised their price target on shares of TIBCO Software from $25.00 to $27.00 in a research note to investors on Tuesday. They now have a “buy” rating on the stock. Finally, analysts at Bank of America upgraded shares of TIBCO Software from a “neutral” rating to a “buy” rating in a research note to investors on Wednesday, March 6th. They now have a $26.00 price target on the stock.

Eleven investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. TIBCO Software currently has a consensus rating of “Buy” and an average target price of $28.64.

TIBCO Software Inc. (NASDAQ: TIBX) is a provider of middleware and infrastructure software. The Company’s software platform enables customers to create applications from infrastructure and deliver real-time and actionable insights.

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