Broadsoft (BSFT) Takeover Deal 'Seems Low', Other Bids Could Emerge - William Blair
Get Alerts BSFT Hot Sheet
Rating Summary:
1 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 11
Join SI Premium – FREE
William Blair analyst Dmitry Netis said the $55 takeover bid for Broadsoft (NASDAQ: BSFT) from Cisco (NASDAQ: CSCO) "seems low" and other strategic buyers could emerge.
"Our back-of-envelope math and DCF analysis pegged the fair value of BroadSoft between $60 and $70 per share, with PE interest setting a backstop at the lower end of this range," the analyst said.
Netis said if management had a choice between an all-cash deal with strategic at $55/share and a $60/share leveraged buyout, they could why Broadsoft chose Cisco. However, if another strategic buyer could emerge, it could spark a bidding war. They think Amazon (NASDAQ: AMZN) makes the most sense.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Recruit Holdings Co., Ltd (6098:JP) (RCRUY) PT Raised to JPY7,800 at Jefferies, 'emerged stronger since the last earnings season'
- Braze Inc (BRZE) PT Lowered to $58 at Scotiabank, 'has done a very formidable job over the last ~12 months'
- Teleperformance (TEP:FP) (TLPFY) PT Lowered to EUR125 at RBC Capital, 'perceived risk profile makes it a no-fly zone for many investors'
Create E-mail Alert Related Categories
Analyst Comments, RumorsRelated Entities
William BlairSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!