Benchmark reiterates Buy rating on CSG Systems stock amid AI positioning

Published 10/09/2025, 14:56
Benchmark reiterates Buy rating on CSG Systems stock amid AI positioning

Investing.com - Benchmark has reiterated its Buy rating and $85.00 price target on CSG Systems International Inc. (NASDAQ:CSGS), citing the company’s strong positioning to weather economic slowdowns. The stock, currently trading at $64.91, has demonstrated robust performance with a 29.11% year-to-date return and maintains a Strong Buy consensus among analysts. According to InvestingPro analysis, the company shows Good financial health with impressive gross margins of 49.66%.

The research firm believes CSG is well-situated during potential U.S. and global economic deceleration as it deploys industry-specific AI applications that generate immediate significant return on investment for clients. InvestingPro data reveals the company’s strong financial position, with liquid assets exceeding short-term obligations and moderate debt levels.

Benchmark notes that companies remain attentive to CSG’s core billing solutions during recessions, which provides stability to the business model amid economic uncertainty.

The firm highlighted that CSG’s Xponent customer journey management and Xponent Analytics products deliver demonstrable ROI to corporate clients, alongside the company’s telecom billing business.

According to Benchmark, CSG stock continues to outperform, particularly for a small-cap company, describing it as having a "Moneyball" appeal as a "less glamorous AI beneficiary."

In other recent news, CSG Systems International has announced a quarterly cash dividend of $0.32 per share, which will be paid to shareholders on October 3, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders. Additionally, Stifel has raised its price target for CSG Systems to $70 from $66, maintaining a Buy rating. This adjustment comes after CSG Systems reported strong second-quarter results, consistent with its first-quarter performance. Benchmark has also reiterated its Buy rating on CSG Systems stock, emphasizing the company’s expertise in artificial intelligence. The firm highlighted CSG’s ability to provide significant return on investment to corporate clients and noted the stability offered by its telecom billing business. These developments underscore the company’s resilience and potential in a challenging economic environment.

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