UPDATE: Oppenheimer Downgrades BroadSoft to Perform; 2013 to Become Transitional
Oppenheimer downgraded BroadSoft (NASDAQ: BSFT) from Outperform to Perform.
Oppenheimer commented, "We downgrade BSFT to Perform as 2013 becomes a transition year— code for flat—for the company. Its core business while strong is seeing a deceleration on the consumer side. Management indicated that neither enterprise nor new product (BroadCloud/BroadTouch) growth could offset it. This was reflected in 2013 guidance: $1.10-1.35 vs Street/Opco estimates of $1.68/$1.66. What's interesting and ultimately pushing us to the sideline is management's expectation for longer-term growth. While the EPS guidance miss is primarily revenue related, we can't look past higher than expected opex which we believe management is increasing to set itself up for 2014/2015 opportunities. Opportunities we worry won't be there."
BroadSoft closed at $30.91 on Wednesday.
Latest Ratings for BSFT
|Mar 2016||Northland Securities||Maintains||Market Perform|
|Jan 2016||Wells Fargo||Upgrades||Market Perform||Outperform|
|Nov 2015||Deutsche Bank||Maintains||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.