UPDATE: J.P. Morgan Raises PT on CSG Systems International on Comcast Contract Renewal
In a report published Thursday, J.P. Morgan analyst Sterling Auty reiterated a Neutral rating on CSG Systems International (NASDAQ: CSGS), and raised the price target from $19.00 to $22.00.
In the report, Auty noted, “CSG Systems this morning announced that it has renewed its contract with Comcast, the company's largest customer. The two had been renegotiating with multiple one month extensions since the end of 2012. The renewal was relatively in line to what we were expecting, signing a four year agreement with a 10% discount. We are maintaining our revenue estimate of $751M but tweaking our operating margins by 30BPS, resulting in a $0.03 reduction to EPS.”
CSG Systems International closed on Wednesday at $20.75.
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