UPDATE: Deutsche Bank Initiates Coverage on BroadSoft with Hold Rating, $24 PT on Soft Near-Term Trends

In a report published Monday, Deutsche Bank analyst Brian Modoff initiated coverage on BroadSoft

with a Hold rating and $24.00 price target. In the report, Modoff noted, “BroadSoft is a ‘Software Platform'; longer-term a ‘SaaS' model, for enabling service providers to deliver VoIP and UC services via Hosted and Cloud delivery models. While we are constructive longer-term on the Hosted and Cloud Services themes - a +$10B long-tail opportunity; our proprietary research notes: 1) softness in consumer and enterprise VoIP ordering patterns; 2) VoLTE (mobile VoIP) not likely to be a next-phase growth opp (BroadSoft's mostly an Enterprise play); 3) slower than expected BroadCloud ramp; 4) growing competition from Cisco, ALU, etc - basis for our initiation with a Hold rating. Our PT is $24 on below consensus FY13/14 estimates.” BroadSoft closed on Friday at $26.00.