Can CSG Systems Become A Billion Dollar Beacon In A Crowded Tech Market? Analyst Says Yes

RBC Capital Markets analyst Dan Bergstrom initiated coverage on CSG Systems International, Inc. CSGS with an Outperform rating and price target of $61.

The analyst is bullish on the company’s goal to accelerate growth and scale by growing the business to more than $1.5 billion by CY/25E.

The analyst says the company can consistently grow organically in the 2%-6% range and strategic M&As, leading to margin expansion and driving EPS growth faster than revenue. 

The analyst also sees revenue management and digital monetization as a recurring, profitable book of business.

Bergstrom writes that CSG is emerging as a partner of choice for brands in higher growth verticals to digitize and monetize customer experiences and payment processes. 

The analyst says that CSG should be in a better position upon contract renewals with major players and its wireless business.

The analyst estimates EPS of $3.91 in 2024 and $4.16 in 2025.

Investors can gain exposure to the stock via ProShares S&P Technology Dividend Aristocrats ETF TDV and ETF Series Solutions AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF SMIG. 

Price Action: CSGS shares are up 0.10% at $50.35 on the last check Wednesday.