Wedbush Securities Reiterates Neutral Rating, $19 PT on CSG Systems International

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In a report published Wednesday, Wedbush Securities reiterated its Neutral rating and $19.00 price target on CSG Systems International
CSGS
. Wedbush noted, “Indonesian-based mobile network operator XL Axiata has selected CSG Systems to provide a mediation solution to XL Axiata's prepaid and postpaid services, consolidating a mix of legacy systems. CSG's Total Service Mediation (TSM) solution will provide a consolidated mediation service to XL Axiata, thereby increasing XL Axiata's efficiency via improved revenue management processes at a lower price tag due to consolidation. XL deal could lead to additional XL regions for CSGS. XL Axiata has been known to extend solutions to other regions, and the deal could indicate further growth through regional expansion for CSG Systems. While the deal was most likely won in the last quarter, it is a consolidation play that could extend to other territories. Overall, we view this deal favorably for investors as a potential growth catalyst for CSG Systems. XL has ~46 million subscribers and a presence in other countries throughout SE Asia for a total of over 187 million subscribers.” CSG Systems International closed on Tuesday at $17.80.
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Posted In: Analyst ColorReiterationAnalyst RatingsWedbush Securities
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