As noted, Tibco is still in the midst of restructuring its business. So I'm not suggesting the company is completely out the woods yet. In that regard, bears are correct to point out that the company is still experiencing some margin weakness. That gross margin narrowed to 71.2% from 71.7%, while total operating expenses jumped 12%, is a perfect example of the work there is left to do at Tibco.

Even though I've been bullish on this stock for several quarters, to say Tibco's growth improvements weren't surprising wouldn't be true. Granted profits are still unspectacular. But there's no denying that management's recent investments in the cloud and data analytics have begun to pay off.

To the extent that Tibco can build its capabilities in specialized areas like integration, while shoring up its core infrastructure business, this stock still has plenty of room to run. For now, though, investors have to credit the management team for having navigated this weak patch and getting this company back on track.

With long-term revenue growth that should outperform both IBM and Oracle, I'm upping my target on this stock to $32 per share, which represents a 30% premium from current levels. How's that for a strong statement?

At the time of publication, the author held no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a co-founder of StockSaints.com where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst - bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense.

His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio.

His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

If you liked this article you might like

Clouds With a Golden Lining: Enterprise Software Targets

Jim Cramer's 'Mad Money' Recap: Don't Leave Gains on the Table

How Will Tibco Software (TIBX) Stock Respond to These Mixed Analyst Actions?

How to Trade the Market's Most-Active Stocks: JNS, PBR, TIBX, ATHL

Jim Cramer's 'Mad Money' Recap: Use the Volatility to Make More Money