Analyst Bullish on CSG Systems’ Growth Potential
RBC Capital Markets analyst Dan Bergstrom has set the wheels in motion, initiating coverage on CSG Systems International, Inc. with an Outperform rating and a price target of $61. Bergstrom’s positive outlook stems from the company’s ambitious mission to expand its business and revenue to over $1.5 billion by CY/25E.
Organic Growth and Strategic M&As Driving CSG Systems Forward
Bergstrom believes that CSG Systems has the capability to sustain consistent organic growth ranging between 2% to 6%. Moreover, strategic mergers and acquisitions are anticipated to not only stimulate margin expansion but also propel EPS growth at a faster pace than revenue.
Revenue Management and Digital Monetization: A Lucrative Business Frontier
The analyst views revenue management and digital monetization as lucrative segments within CSG Systems’ portfolio, offering a steady and profitable source of revenue.
CSG Systems as the Preferred Partner for Growth Industries
Bergstrom highlights that CSG Systems is positioning itself as the go-to partner for brands operating in high-growth sectors, assisting them in digitalizing and monetizing customer experiences and payment processes.
Future Projections and Investment Opportunities
Looking ahead, Bergstrom estimates an EPS of $3.91 in 2024, surging to $4.16 in 2025. For investors keen on tapping into the potential growth of CSG Systems, exposure to the stock can be gained through ProShares S&P Technology Dividend Aristocrats ETF (TDV) and ETF Series Solutions AAM Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG).
Market Performance
As of the latest update on Wednesday, CSG Systems’ shares have risen by 0.10%, reaching $50.35.
