The Analysts Weigh In On TIBCO Following Preliminary Q2 Earnings

TIBCO Software Inc.

announced worse than expected preliminary second quarter earnings and reduced guidance for the quarter on Tuesday. In response a number of analyst firms released notes Wednesday to provide insight on their opinion of the company.

Outperform, $25-27 valuation range Despite the company's poor performance in the second quarter, the team at Wells Fargo says the stock could recover over the next 12 months. They explained this view is based on the company likely setting "conservative" and "achievable" forward guidance due to a new CFO, as well as an increased focus on its analytics products. While the team remains optimistic, they have reduced their total revenue estimates for the quarter to $251 million and are attributing the shortfall primarily to the poor performance of Spotfire.

Neutral, $18 price target On this news, analysts at Mizuho have downgraded TIBCO from Buy to Neutral citing the third straight quarter sub par performance from Spotfire. The team acknowledge that TIBCO's management highlighted a plan to improve Spotfire performance but warned that is is likely to take multiple quarters before any improvement is seen.

Hold, $17.00 price target Analysts at Deutsche Bank emphasized the Spotfire miss commenting, "given Spotfire's size, a $13 million license sales miss in a single quarter implies that Spotfire fell off a cliff." Furthermore, the Deutsche Bank team suspects the non-core infrastructure software business underperformed as well. TIBCO shares have regained some ground today after falling over 12 percent from the previous day's close to open at $18.25