Goldman Sachs Downgrades Broadsoft (BSFT) to Neutral

Goldman Sachs downgraded Broadsoft (NASDAQ: BSFT) from Buy to Neutral with a price target of $31 (unchanged).

Analyst Simona Jankowski said, "While the shares are up on an absolute basis, they have lagged the market, largely, in our view owing to disappointing margin performance, as operating margins have declined form 26% in 2012 to 19% in 2014E, with gross margins declining from 83% to 78% as a result of increased investment and a shift to the lower-margin BroadCloud business."

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 $29.10 yesterday.

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