J.P. Morgan Lowers Price Target On CSG Systems To $22

According to J.P. Morgan, CSG Systems CSGS price target is lowered to $22. J.P. Morgan said that several of the drags on 1Q11 have lingered on and with no immediate relief in sight 2011 estimates are coming down, but valuation even on new estimates looks cheap so it would be surprised to see a lot of downside; more likely the stock languishes until improvement in top line appears. “Lowering price target to $22 but extending the time frame to a December 2012 target and using a ~10x P/E on 2012 estimates.” CSG Systems closed yesterday at $18.57.