Goldman Sachs Raises Price Target, Estimates on TIBCO (TIBX) After Solid Q1
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Price: $24.03 --0%
Rating Summary:
5 Buy, 19 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 19 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs maintained a Neutral rating on shares of TIBCO Software Inc. (NASDAQ: TIBX) following the company's Q1 results.
The firm commented TIBX did not post the upside this quarter investors are typically use to, but the results were still really positive as licenses grew 29% year-over-year. Goldman notes license growth was driven by Business Optimization and BPM as they grew by over 100% and 70% year-over-year. Due to four fewer days in the quarter, service revenues were slightly lower.
TIBX released solid Q2 guidance, expecting current trends in the market to improve. The company experienced strong growth of 34% from last year in the Americas segment, while the APAC segment grew by 15%. TIBX stated that it has low-single-digit exposure to Japan and the Middle East.
Goldman raised its EPS estimates for 2011 from $0.90 to $0.92, 2012 from $1.05 to $1.10, and its 2012 from $1.18 to $1.24. The firm is raising its price target from $22 to $25.
The analysts said, "while we do not expect coming quarters to exhibit the kind of upside investors have grown accustomed to seeing over the past year or two, we do not believe that 2Q will shake the bull thesis – namely solid growth and margin outlook and a top M&A candidate in a consolidating industry."
The firm commented TIBX did not post the upside this quarter investors are typically use to, but the results were still really positive as licenses grew 29% year-over-year. Goldman notes license growth was driven by Business Optimization and BPM as they grew by over 100% and 70% year-over-year. Due to four fewer days in the quarter, service revenues were slightly lower.
TIBX released solid Q2 guidance, expecting current trends in the market to improve. The company experienced strong growth of 34% from last year in the Americas segment, while the APAC segment grew by 15%. TIBX stated that it has low-single-digit exposure to Japan and the Middle East.
Goldman raised its EPS estimates for 2011 from $0.90 to $0.92, 2012 from $1.05 to $1.10, and its 2012 from $1.18 to $1.24. The firm is raising its price target from $22 to $25.
The analysts said, "while we do not expect coming quarters to exhibit the kind of upside investors have grown accustomed to seeing over the past year or two, we do not believe that 2Q will shake the bull thesis – namely solid growth and margin outlook and a top M&A candidate in a consolidating industry."
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