Analyst: CSG Shares Look Like a Bargain


Lehman Bros. analyst Adam Waldo initiated coverage of CSG Systems International Inc. with an "overweight" rating — its highest — and set a $37 price target on the stock. In his report, Waldo said CSG shares are cheap, adding that investors have already more than discounted for risks, including weak backlog and the potential loss of one of its largest customers — AT&T Broadband. The report lifted CSG — it closed Sept. 6 at $12.25, up 85 cents — but that gain was short-lived. CSG shares retreated on Sept. 11, closing at $11.96, down 15 cents.