RESEARCH ALERT-TIBCO on Goldman "recommended" list
NEW YORK, Aug 9 (Reuters) - Goldman Sachs has started coverage of TIBCO Software Inc., placing the stock on its ``recommended' list, analyst analyst Anne Meisner said on Monday.
TIBCO, based in Palo Alto, Calif., is majority-owned by global news and information group Reuters Group Plc (quote from Yahoo! UK & Ireland: RTR.L) (Nasdaq:RTRSY - news). TIBCO shares rose 1-3/16 to 23-1/4 in early trading on the New York Stock Exchange.
TIBCO's products enable businesses to integrate internal operations and allow computer applications to communicate better over the Internet. The company went public in mid-July at an offering price of $15 per share.
Goldman was the lead underwriter on the TIBCO IPO.
Meisner said she was positive on TIBCO's prospects for several reasons, including its ``unique and robust messaging infrastructure that is proven technology and over 10 years old,' its leading position in a high-growth market, and partnerships with Cisco Systems Inc. (Nasdaq:CSCO - news) and Sun Microsystems Inc. (Nasdaq:SUNW - news) .
Meisner said she set a 12-month price target of $33 on TIBCO shares.
The analyst said she projects net revenues of $83 million for TIBCO for fiscal 1999, ending in November, and revenues of $127 million for fiscal 2000. She sees a TIBCO fiscal 1999 operating loss of $12.4 million, or a net loss of $0.21 per share, and a fiscal 2000 operating loss of $6.3 million. or a net loss of $0.05 per share. She expects TIBCO to become profitable in the fourth quarter of fiscal 2000.
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