Goldman Sachs Reiterates Neutral, $31 Target on Broadsoft
Goldman Sachs remains rated Neutral with a $31 target price on Broadsoft (NASDAQ: BSFT) as growth decelerates and margins fall.
Goldman Sachs notes, "We remain on the sidelines, as Broadsoft's revenue growth is decelerating while opex is ramping, driving operating margin compression to 23% in 2012 on our estimates, down from 26% in 2011 and below consensus at 26% (although in line with GSe). Broadsoft's non-GAAP 2012 EPS guidance now excludes the non-cash portion of its taxes, or $0.24 at the midpoint, with the company using a 2% non-GAAP tax rate for 2012 vs. its prior expectation of 21-22%."
BSFT closed at $36.37 a share on Wednesday.
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