Goldman Sachs Upgrades Broadsoft (BSFT) to Buy; Pullback Offers Opportunity
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Price: $28.19 -0.42%
Rating Summary:
5 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
5 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade BSFT Now!
Goldman Sachs upgraded Broadsoft (NASDAQ: BSFT) from Neutral to Buy with a price target of $31.00.
Analyst, Simona Jankowski, said, "The stock’s recent pull-back (-47% over three months; S&P500 -1%) offers more than 30% upside to our $31, 12-month price target. We estimate BroadSoft’s top- and bottomline CAGR at over 20% over the next three years, driven by the secular shift in enterprise telephony to hosted VoIP/Unified Communications, which we estimate is currently at mid-single-digit penetration. Moreover, we view BroadSoft’s defensive high-margin software model as attractive in the current environment, with 42% of sales coming from maintenance/ services, and license sales tied to end user adoption vs. carrier capex."
FY12 EPS estimate raised from $0.51 to $0.58, FY13 from $0.94 to $1.17 and FY14 from $1.44 to $1.71.
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 $23.47 yesterday, with a 52 week range of $20.13-$45.32.
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Analyst, Simona Jankowski, said, "The stock’s recent pull-back (-47% over three months; S&P500 -1%) offers more than 30% upside to our $31, 12-month price target. We estimate BroadSoft’s top- and bottomline CAGR at over 20% over the next three years, driven by the secular shift in enterprise telephony to hosted VoIP/Unified Communications, which we estimate is currently at mid-single-digit penetration. Moreover, we view BroadSoft’s defensive high-margin software model as attractive in the current environment, with 42% of sales coming from maintenance/ services, and license sales tied to end user adoption vs. carrier capex."
FY12 EPS estimate raised from $0.51 to $0.58, FY13 from $0.94 to $1.17 and FY14 from $1.44 to $1.71.
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 $23.47 yesterday, with a 52 week range of $20.13-$45.32.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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