Goldman Downgrades Tibco

Includes: IBM, ORCL, SAP, TIBX
by: Eric Savitz

Goldman Sachs analyst Derek Bingham Monday downgraded Tibco Software (NASDAQ:TIBX) to Sell form Neutral, and cut his price target to $8 from $9, reflecting his view that Tibco is one of the companies most at risk from a more difficult IT spending environment in 2008. “We believe that in tighter times, buyers tend to move away from expensive, best-of-breed offerings and toward ‘good enough’ substitutes bundled with broader solutions at lower prices from the likes of (NYSE:IBM), Oracle (NYSE:ORCL) and (NYSE:SAP),” he wrote this morning. “Large deal sizes and high financials exposure heading into the seasonally slower first half heighten Tibco’s risk relative to most of our group.”

Bingham sees EPS for the November 2008 fiscal year of 43 cents, with 50 cents next year, below the Street at 44 cents and 53 cents.

In pre-market trading Monday, Tibco shares are down 38 cents, or 5%, at $7.24.

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