UPDATE: Deutsche Bank Reiterates On BroadSoft On Continued Cautious Stance

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In a report published Tuesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on
BroadSoftBSFT
, but lowered the price target from $28.00 to $20.00. In the report, Deutsche Bank noted, “Q1 miss; Q2 guide down; maintain Hold on 2H14+ growth caution. Weak report from BroadSoft: Q1: $43.9M / $0.07 and the Q2 guide ($48M- $52M / $0.17-0.31) coming in below consensus. Management reiterated their CY14 outlook ($206M-212M / $1.26-1.36) – which suggests rev re-acceleration during 2H14; a stretch goal in our view (we are modeling CY14 slightly below the low-end of BroadSoft's outlook). "We remain cautious on BroadSoft's 2H14+ growth story – noting decelerating trends in consumer VoIP; enterprise VoIP not a top-tier CIO priority, and growing competition from Microsoft and Cisco. We remain on the sidelines on this small-cap hosted VoIP and UC play. Lower our PT from $28 to $20 on our updated FY14/15 estimates.” BroadSoft closed on Monday at $20.16.
Posted In: Analyst ColorPrice TargetAnalyst RatingsDeutsche BankGreg Poole
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