In a report published Tuesday, Bank of America analyst Kash Rangan reiterated a Buy rating and $30.00 price target on TIBCO Software (NASDAQ: TIBX).
In the report, Bank of America noted, “We recently met with Tibco management (new President Todd Bradley, new CFO Jim Johnson, and COO Murray Rode) for an overview of the recent shift in strategy and business plan. We walked away cautiously optimistic and believe the company has a clear vision of multiple strategic and tactical moves to improve the business.
"(1) The near-term priority is to broaden access to Spotfire via web-based selling and shift the Spotfire business to subscription,leveraging the experience of the Jaspersoft team; (2) In a similar vein, over time, core infrastructure elements will be made easier to consume and offered as subscription in part to address competition at the low end; (3) Deeper penetration in verticals (for example oil and gas); (4) Improve international execution (UK, France, Germany, Japan,Australia); (5) Sellmore into the installed base; (6) Complement the existing 100% direct sales driven model with a channel. We see most of these levers as ways to drive better efficiency out of its solid product set and expand the addressable market. The company reiterated its goal of ~20% subscription as a % of software sales in FY15E.”
TIBCO Software closed on Monday at $21.26.
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