CSG Systems initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst Michael Berg initiated coverage of CSG Systems with an Equal Weight rating and $49 price target. The analyst views the company’s customer concentration, competition and structural concerns as “key offsets,” leaving the firm balanced on the shares. CSG operates in a competitive market that is growing in breadth and intensity as it expands its product offering, the analyst tells investors in a research note. Between the company’s core market opportunity and gross margin profile, Wells expect there to be limited top/bottom line upside for the majority of the business.