Stifel raises CSG Systems International's PT to $70 from $66 with Buy rating.

Stifel raises CSG Systems International's PT to $70 from $66 with Buy rating.

Stifel Financial has raised its price target on CSG Systems International Inc. (NASDAQ: CSGS) from $66 to $70, maintaining a Buy rating on the stock. The upgrade follows the company's strong second-quarter 2025 results, which were "strong across the board" and similar to the first quarter's performance [3].

CSG Systems International reported non-GAAP earnings per share (EPS) of $1.16, beating analyst expectations of $1.05 per share [2]. Revenue for the quarter rose to $297.13 million, up from $290.32 million in the prior year, representing a 2.3% year-over-year increase [2]. The company also declared a quarterly cash dividend of $0.32 per share, totaling approximately $9 million [2].

Stifel noted that CSG Systems' impressive gross profit margins of 49.7% and its strong financial health, indicated by an InvestingPro Overall Score of 2.62, are key factors contributing to the price target increase. The research firm expects the company to achieve a 19% adjusted operating profit margin in 2026 and believes the strong margin trends are sustainable [3].

The new price target of $70 reflects an 8.6x EV/EBITDA multiple based on Stifel's 2025 and 2026 estimates, averaged, which is similar to the previous valuation methodology but rolled forward by one year [3].

References:
[1] https://seekingalpha.com/news/4480571-csg-systems-international-non-gaap-eps-of-116-beats-by-011-revenue-of-2971m-beats-by-2962m
[2] https://www.nasdaq.com/articles/csg-systems-international-q2-profit-down-backs-fy25-outlook
[3] https://www.investing.com/news/analyst-ratings/csg-systems-stock-price-target-raised-to-70-from-66-at-stifel-93CH-4178493