Goldman Sachs Raises BSFT Estimates; PT Goes To $23

Goldman Sachs is raising its BroadSoft, Inc. (NASDAQ: BSFT) FY11/12 non-GAAP EPS estimates to $0.60/$0.90 from $0.58/$0.86, to reflect stronger than expected uptake in VoIP subs at BroadSoft's carrier customers slightly offset by a higher share count on its issuance of 0.5mn primary shares in the deal.

“We believe top customer Verizon (NYSE: VZ) continues to experience strong FiOS subscriber addition trends, as highlighted by CEO Ivan Seidenberg at an investor conference this week,” Goldman Sachs writes.

“In particular, Verizon commented that its FiOS sub add increases are sustainable; note that in the latest reported quarter, 3Q, Verizon added 226k new broadband FiOS subscribers, up 17% qoq and 17% yoy.”

Goldman Sachs is raising its 12-month price target to $23 (from $11) “based on a target P/E of 38X (raised from 19X, on multiple expansion for the comp group) on our new non-GAAP CY11E EPS of $0.60 ($0.58 prior).”

BroadSoft currently trades at $28.66; Verizon trades at $36.27.