Kaufman Bros. Upgrades CSG Systems International (CSGS) to Buy

October 26, 2009 8:08 AM EDT

Kaufman Bros. upgrades CSG Systems International (NASDAQ: CSGS) to Buy. Price target increased from $17 to $20.

Kaufman analyst says, "Given 1H09 non-GAAP margins of 18.2%, most investors believe that the full-year 2009 margin guidance of 17.7% seems very achievable. Despite the improving fundamentals and upward guidance revision, CSG shares are up just 10% since the 2Q09 call in late July, exactly in line with the 10% rally in the S&P 500 index over the same period. Investors are clearly concerned with the contract renewal risk associated with DISH, a 19% client. CSG has said little, other than that the existing contract runs through year-end, a 4Q09 contract announcement is expected and that it remains hopeful that it can re-sign DISH to a multi-year deal. Rival Amdocs has been open with the Street that it is bidding for the deal...Our 2010 non-GAAP EPS estimate of $1.74 represents growth of 7% from $1.62 in 2009."

To see more analyst ratings on CSGS Click Here.

CSG Systems International, Inc. provides outsourced solutions primarily to North American cable and Direct Broadcast satellite communications markets.

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