William Blair analyst Maggie Nolan has maintained their bullish stance on CSGS stock, giving a Buy rating today.
Maggie Nolan’s rating is based on CSG Systems International’s strong financial performance and strategic initiatives. The company reported first-quarter results that exceeded expectations, with adjusted revenue slightly ahead of consensus and a significant beat on earnings per share. This performance was supported by effective profit improvement measures, as evidenced by the notable year-over-year increase in both adjusted EBITDA and operating margins.
Furthermore, CSG Systems International has demonstrated a commitment to shareholder value through planned share repurchases and dividends. The company’s strategic focus on reducing working capital needs and expanding its revenue base beyond cable and telecom sectors has bolstered confidence in its long-term growth strategy. With management’s guidance indicating an acceleration in revenue growth and profitability targets, Nolan sees a promising outlook for CSG Systems International, justifying the Buy rating.
According to TipRanks, Nolan is an analyst with an average return of -1.7% and a 43.24% success rate. Nolan covers the Technology sector, focusing on stocks such as Exlservice Holdings, Grid Dynamics Holdings, and ASGN.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $69.00 price target.