UPDATE: Goldman Sachs Lowers BroadSoft PT to $38 Citing Disappointing Guidance

Goldman Sachs published a report Thursday in which they lowered BroadSoft, Inc.'s

price target from $44 to $38, while reiterating its Buy rating. According to Goldman Sachs, "The midpoint of the 2013 revenue guidance was $12 mn below Consensus due to (1) around $3-5 mn in lower professional services related to the timing of revenue recognition, (2) around $3-5 mn in lower consumer/ wireline VoIP deployments, and (3) the recognition of the $10mn deal from deferred revenues in 1H 2014, rather than in 4Q 2013 as some estimates (including ours) had assumed...[S]tripping out these effects, the guidance implies that the Unified Communications (UC) business (BroadWorks and BroadCloud) will grow ~20% in 2013, in line with our view. So while we were disappointed by the guidance, we maintain our Buy, as the core UC trends that underpin our thesis remain solid, and VoLTE will drive incremental growth in 2014." BroadSoft closed on Wednesday at $30.91.