Wedbush analyst Steve Koenig published a report on TIBCO Software TIBX that reduced its rating to Outperform and lowered its 12-month price target from $30 to $25.
Wedbush reported that, “Like ORCL, the company blamed the miss on its own execution, as the
company has been slow to respond to a shifting competitive game with software
majors, who have been winning deals against TIBX with a message that their
technology is “good enough.” Our take is that the majors – especially IBM – are
out-competing TIBX in non-technical aspects of infrastructure deals, such as
pricing, bundling, and leveraging account relationships. While this shouldn't be
surprising in a difficult economic environment, what surprises us is TIBX's lack of
agility in responding to the changing competitive dynamic. Also, the demand
environment is proving to be worse than we thought, as evidenced by ORCL's 10%
miss on the license line (relative to our estimates) on Tuesday.”
Shares of TIBCO Software closed at $22.17 on Thursday.
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