Kaufman Bros. Upgrades CSG Systems International (CSGS) to Buy
CSGS Hot Sheet
Rating Summary:1 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
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.
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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