Following lackluster third quarter results, analysts at Wedbush reiterated a Neutral rating and $20 price target on shares of Tibco Software Inc. TIBX Friday.
On Thursday after hours the company reported EPS of $0.14 per share missing Street estimates of $0.18 per share by 22 percent. Sales also missed the mark by $12.88 million.
Most importantly, analysts believe Tibco may struggle to sell itself given its pressured fundamentals.
Steve Koenig stated, “We are not sanguine about the company’s ability to garner an offer near the $30 level, we think the company’s infrastructure assets are becoming less strategic in the market. Also, SAP’s announcement last night of its plan to acquire Concur Technologies for $8.3B may take SAP’s attention away from any other large acquisitions in the near-term. Our valuation work indicates a potential take-out valuation of $22-26, if a deal can be done at all.”
Shares of Tibco Software recently traded at $20.14 down 3.15 percent.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
