Jefferies analyst Surinder Thind maintained a Buy rating on CSG Systems International (CSGS – Research Report) today and set a price target of $76.00.
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Surinder Thind has given his Buy rating due to a combination of factors that highlight the promising growth prospects of CSG Systems International. The company’s CX and Payments businesses are expected to maintain double-digit growth, driven by strong demand and emerging use cases, which expand the total addressable market. Moreover, the shift towards cloud solutions in the billing sector is anticipated to significantly enhance operating and free cash flow margins, as the majority of telecommunications companies still operate on outdated systems.
Additionally, Thind is optimistic about the company’s future performance, particularly with the potential benefits from the Charter and Cox merger. If successful, this could result in a substantial revenue increase for CSG Systems. Furthermore, management’s confidence in achieving higher gross margins and improved free cash flow conversion rates in the coming years supports the positive outlook. These factors, combined with the opportunity for market re-rating as investors become more aware of CSGS’s growth potential, underpin Thind’s Buy recommendation.
In another report released on May 19, Sidoti also maintained a Buy rating on the stock with a $83.00 price target.
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