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Several investment firms have updated their stock ratings and price targets on shares of BroadSoft (NASDAQ: BSFT) in the last week:

  • BroadSoft was upgraded by analysts at Morgan Stanley from a “market perform” rating to an “outperform” rating. They now have a $24.00 price target on the stock. They wrote, “baked into” management’s full year guidance. McCourt wrote, “Although we believe BroadSoft’s customers are largely losing modest share in the hosted IP telephony market (which we believe has caused much of the weakness/choppiness the last ~2 years), we believe the market is still growing nicely, and that over time, although lumpy, the company’s licensed software revenue stream should grow modestly. “Additionally, with meaningful transition of telecom networks to a software-centric architecture, BroadSoft is positioned well for consolidation, in our opinion. Finally, we believe the company’s Sprint VoLTE contract win should limit revenue disruption potential in 2015-2017, and at this valuation, any degree of revenue growth should lead to share outperformance.”
  • BroadSoft had its price target lowered by analysts at Deutsche Bank from $28.00 to $20.00. They now have a “hold” rating on the stock. They wrote, “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 was upgraded by analysts at Raymond James from a “market perform” rating to an “outperform” rating. They now have a $24.00 price target on the stock.
  • BroadSoft had its price target lowered by analysts at Jefferies Group from $38.00 to $29.00. They now have a “buy” rating on the stock.
  • BroadSoft had its price target lowered by analysts at Northland Securities from $32.00 to $24.00. They now have a “market perform” rating on the stock.
  • BroadSoft was upgraded by analysts at Cowen and Company from a “market perform” rating to an “outperform” rating. They now have a $27.00 price target on the stock.
  • BroadSoft had its price target lowered by analysts at Needham & Company LLC from $36.00 to $28.00. They now have a “buy” rating on the stock.
  • BroadSoft was downgraded by analysts at TheStreet from a “hold” rating to a “sell” rating. They wrote, “BroadSoft (BSFT) has been downgraded by TheStreet Ratings from hold to sell. The company’s weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.”

Shares of BroadSoft Inc (NASDAQ:BSFT) opened at 22.72 on Tuesday. BroadSoft Inc has a one year low of $18.88 and a one year high of $37.93. The stock has a 50-day moving average of $25.06 and a 200-day moving average of $27.3. The company’s market cap is $649.4 million.

BroadSoft, Inc (NASDAQ:BSFT) is a is a global provider of software and services that enable mobile, fixed-line and cable service providers to deliver unified communications (UC) and other voice and multimedia services over their Internet protocol-based (IP-based) networks.

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