Tibco Software Not An Acquisition Candidate

Goldman Sachs has downgraded Tibco Software Inc(NASDAQ: TIBX) to “sell.” The target price for TIBX has been reduced from $9.50 to $9.00.

TIBX’s focus on EPS growth has improved and the company continues to offer best-quality technology in several areas, Goldman Sachs said. Recent market checks, however, have indicated that TIBX continues to face aggressive competition, Goldman Sachs added.

Goldman Sachs believes that Tibco Software’s natural acquirers are concentrating in other areas. For example, Oracle is buying Sun and the likely focus of SAP would be on analytics or SaaS sector rather than TIBCO. Thus, there is limited M&A potential for TIBX in the near term, Goldman Sachs added.