Wells Fargo Upgrades Tibco Software, Inc. (TIBX) to Outperform; Near a Bottom
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Price: $24.03 --0%
Rating Summary:
5 Buy, 19 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 19 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo upgraded Tibco Software, Inc. (NASDAQ: TIBX) from Market Perform to Outperform with a price target of $25.00 (from $23.00), saying shares are nearing a bottom.
The upgrade comes ahead of Q2 2013 (May) results on June 20, and follows a string of weaker-than-expected quarters, management changes, and sales performance problems.
"While we think it is unlikely that the company has had time to fully resolve its execution issues, we do believe that guidance for this quarter is conservative enough for the company to hit the low end of the range," analyst Jason Maynard notes. "On the last call TIBCO did not provide an outlook beyond Q2 and our estimates for the remainder of the year are well below consensus. While it is possible that there could be one more round of estimate revisions to come, we think our model represents a trough and most buy-siders are not relying on the consensus figures."
He continued, "Looking forward we think the company could show improvement as sales changes are made and key verticals like financials stabilize. While the recent business performance has been disappointing we still think the company can grow revenue greater than 10% over the intermediate term. We believe the downside risk to the stock is limited and there are multiple catalysts to drive estimates and the multiple higher."
For an analyst ratings summary and ratings history on Tibco Software, Inc. click here. For more ratings news on Tibco Software, Inc. click here.
Shares of Tibco Software, Inc. closed at $21.55 yesterday.
The upgrade comes ahead of Q2 2013 (May) results on June 20, and follows a string of weaker-than-expected quarters, management changes, and sales performance problems.
"While we think it is unlikely that the company has had time to fully resolve its execution issues, we do believe that guidance for this quarter is conservative enough for the company to hit the low end of the range," analyst Jason Maynard notes. "On the last call TIBCO did not provide an outlook beyond Q2 and our estimates for the remainder of the year are well below consensus. While it is possible that there could be one more round of estimate revisions to come, we think our model represents a trough and most buy-siders are not relying on the consensus figures."
He continued, "Looking forward we think the company could show improvement as sales changes are made and key verticals like financials stabilize. While the recent business performance has been disappointing we still think the company can grow revenue greater than 10% over the intermediate term. We believe the downside risk to the stock is limited and there are multiple catalysts to drive estimates and the multiple higher."
For an analyst ratings summary and ratings history on Tibco Software, Inc. click here. For more ratings news on Tibco Software, Inc. click here.
Shares of Tibco Software, Inc. closed at $21.55 yesterday.
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