Success Of The Emerging CEP Market Helping TIBCO Excel

Analysts at Goldman Sachs upgrade Tibco Software Inc TIBX from "sell" to "neutral," while raising their estimates for the company. The target price for TIBX has been raised from $11.5 to $12.5. Goldman Sachs believes that the “complex event processing (CEP) market is starting to heat up, where TIBCO is an early leader. Furthermore, though we have a relatively modest view of the pace of the company’s overall organic growth, we expect TIBCO to continue to execute well on driving EPS growth through a combination of organic growth, accretive M&A, cost leverage, and share repurchase.” “Thus, the success of the emerging CEP market, which is associated with high-volume analytics, seems a key to TIBCO's ability to excel vs. large competitors. Incidentally, CEP deployments are most effective on top of BPM, suggesting a virtuous cycle that improved BPM results can help to drive,” the analysts say. Goldman Sachs has raised its non-GAAP EPS estimates for FY10 and FY11 from $0.63 to $0.65 and from $0.70 to $0.76, respectively. More Analyst Ratings here