UPDATE: Citigroup Reiterates Buy Rating, Raises PT on CSG Systems International

In a report published Wednesday, Citigroup reiterated its Buy rating on CSG Systems International (NASDAQ: CSGS), and raised its price target from $19.00 to $22.50.

Citigroup noted, “CSGS reported another strong quarter, with top- and bottom-line results beating expectations. Following the beat, the company raised its revenue, EPS and cash flow guidance for the year while expressing confidence that it should report results toward the upper half of its revised full year ranges. Execution at the company remains strong and we remain confident that the company will secure contract renewals from two key clients (Comcast and Time Warner), which could serve as additional positive catalysts for the stock. We are raising our 2012 estimates and our price target goes to $22.50 (from $19). We continue to believe the stock offers consider value at current 2012 valuation levels of ~8.5x P/E and FCF yield of ~16%. Buy CSGS.”

CSG Systems International closed on Tuesday at $17.80.

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