UPDATE: Citigroup Downgrades CSG Systems International to Neutral

Citigroup has published a research report on CSG Systems International

and has downgraded the company from Buy to Neutral after having priced in positive catalysts. In the report, Citigroup wrote, "We are downgrading CSGS to Neutral/High Risk from Buy/High Risk. The stock has had a strong run YTD heading into potential contract renewals with key clients Comcast (~20% of revs, expires Dec-12) and Time Warner (~10%, Mar-13). We believe the stock is now reflecting successful renewals – we had anticipated this but it seems to have become a consensus view now. So, the catalysts are reflected but not the risks, i.e., near-term price discounts for the renewals (as seen with DISH last year), which limit our revenue and margin growth expectations for 2013. Additionally, a weak sales environment implies a lack of other catalysts while the need for continued investments implies margin weakness." Citigroup also raised the price target from $22.50 to $24 on CSG Systems, which is currently trading down 2.44 percent from Monday's $22.92 closing price.