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Investing.com - Benchmark maintained its Buy rating and $85.00 price target on CSG Systems International Inc. (NASDAQ:CSGS) ahead of the company’s second-quarter earnings release scheduled for August 6. Currently trading at $61.72, the stock shows potential upside according to InvestingPro analysis, which indicates the stock is slightly undervalued based on its proprietary Fair Value model.
The research firm highlighted CSG’s underlying durability in a potentially slowing economy, noting the company’s products offer "immediately demonstrable and significant ROI" to corporate clients, while its telecom billing business provides stability. This stability is reflected in the company’s impressive 49.14% gross profit margins and strong liquidity position, with current assets exceeding short-term obligations by 1.55x.
Benchmark emphasized that CSG’s AI expertise differs from "fuzzy overall GenAI assertions" and instead focuses on "quantifiable smaller model solutions with specific adaptation to industry verticals," particularly enabling communications service providers to achieve end-to-end visibility across customer engagement and network layers.
The firm pointed to CSG’s growing importance as a strategic partner for high-profile technology companies, referencing the company’s expanded collaboration with AWS announced last month to accelerate cloud transformation in telecommunications and financial services.
Benchmark noted that CSG possesses the global footprint necessary to implement these initiatives worldwide, not just in advanced North American and European economies.
In other recent news, CSG Systems International Inc. reported impressive financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.14, which was above the forecasted $1.02, marking an 11.8% beat. Revenue also exceeded projections, reaching $299.5 million compared to the anticipated $270.7 million. This performance represents the highest first-quarter revenue in the company’s history, reflecting strong operational execution and strategic initiatives. Additionally, CSG Systems held its Annual Meeting of Stockholders, where shareholders approved the compensation of Named Executive Officers and elected all Class I Director nominees with overwhelming support. The ratification of KPMG LLP as the independent auditor for fiscal 2025 was also confirmed with a significant majority vote. These developments indicate robust shareholder confidence in the company’s leadership and strategic direction.
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