Needham & Company Remains Bullish on Broadsoft (BSFT) Following Analyst Day

Needham & Company reiterated a Buy rating and $47.00 price target on Broadsoft (NASDAQ: BSFT) following the company's analyst day. CFO Tholen reiterated the company's expectations of 7-10% Software revenue growth in 2017, with a seeming bias toward the upper end of this range. Management emphasized BSFT's new products in the contact center, and collaboration spaces, as well as a new stripped-down "Platform as Service," or PaaS, cloud delivery option, as expanding its TAM.

Analyst Richard Valera commented, "We attended BSFT's Analyst Day in NY yesterday. While there were (expectedly) no major product announcements or guidance updates, we felt there were a few incrementally positive takeaways. At the margin, the company's discussion of inventory as a likely transient headwind in 2016, the incremental color on its new (TAMexpanding) product and marketing initiatives and the announcement of DT as another carrier that will be ramping in 2017, were all positive. Net, with expectations for midto upper-teens top-line growth and the shares trading at ~15x ex-cash NG EPS, we continue to see BSFT shares as having an attractive risk/reward. Reiterate Buy."

For an analyst ratings summary and ratings history on Broadsoft click here. For more ratings news on Broadsoft click here.

Shares of Broadsoft closed at $42.05 yesterday.

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