
CSGS Stock Forecast & Price Target
CSGS Analyst Ratings
Bulls say
CSG Systems International Inc. is experiencing robust growth in key areas, with Customer Experience and Digital Payments expanding in the double digits, indicating strong demand for its services. The company's targeted approach to organic growth in the 2–6% range, along with strategic M&A opportunities, is expected to lead to margin expansion and accelerated earnings per share (EPS) growth that surpasses revenue growth. Furthermore, favorable conditions upon contract renewals, along with a potentially beneficial outlook for the wireless business, strengthens the company's position for achieving its ambitious goal of scaling the business to over $1.5 billion by 2025.
Bears say
CSG Systems International Inc. faces a negative outlook primarily due to its high revenue concentration, with roughly 39% of revenues derived from large North American service providers, which has been declining and presents risks related to industry trends and potential consolidations. Additionally, the company may encounter challenges with free cash flow (FCF) growth estimates, with a projected downside scenario indicating significant reductions in FCF growth rates, which could adversely affect its valuation metrics. Furthermore, increasing competition from in-house developer teams and independent providers in the revenue management and digital services space adds to the pressures the company may face moving forward.
This aggregate rating is based on analysts' research of CSG Systems International and is not a guaranteed prediction by Public.com or investment advice.
CSGS Analyst Forecast & Price Prediction
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