CSG Systems stock price target raised to $70 from $66 at Stifel

Investing.com - Stifel raised its price target on CSG Systems International Inc. (NASDAQ:CSGS) to $70.00 from $66.00 on Thursday, while maintaining a Buy rating on the stock. The company, currently trading at $63.51, shows promising valuation metrics according to InvestingPro data, with a PEG ratio of 0.62 indicating attractive pricing relative to growth.

The price target increase follows CSG Systems’ strong second-quarter 2025 results, which Stifel noted were "strong across the board" and similar to the company’s first-quarter performance. The company maintains impressive gross profit margins of 49.7% and demonstrates good financial health with an InvestingPro Overall Score of 2.62.

Stifel indicated there was no quarterly change in the operating environment for CSG Systems, a sentiment that was also expressed by competitor Amdocs (NASDAQ:DOX).

The research firm continues to expect CSG Systems to achieve a 19% adjusted operating profit margin in 2026 and believes the strong margin trends are sustainable.

Stifel’s new $70 price target reflects an 8.6x EV/EBITDA multiple based on the firm’s 2025 and 2026 estimates, averaged, which represents a similar valuation methodology to its previous analysis but rolled forward by one year.

In other recent news, CSG Systems International Inc. reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved earnings per share (EPS) of $1.14, beating the forecasted $1.02. Additionally, CSG Systems’ revenue reached $299.5 million, exceeding the anticipated $270.7 million. In other developments, Benchmark reiterated its Buy rating on CSG Systems, maintaining a price target of $85.00, citing the company’s expertise in AI and the stability of its telecom billing business. The firm emphasized the significant return on investment that CSG’s products offer to corporate clients. Furthermore, at the Annual Meeting of Stockholders on May 14, 2025, all Class I Director nominees were successfully elected with overwhelming support. Gregory Conley, Marwan Fawaz, and Samantha Greenberg received approval ratings of 98.3%, 97.0%, and 99.1%, respectively. The meeting also saw shareholders approving executive pay, indicating strong support for the company’s leadership.

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