UPDATE: Wedbush Reduces PT to $25 and Reiterates Outperform Rating on TIBCO Software on 1Q Miss

Wedbush analyst Steve Koenig published a report on TIBCO Software

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.