Convergys Rises After Citi Analyst Upgrades Stock

SAN FRANCISCO (AP) — Convergys Corp. shares rose Monday after a Citi Investment Research analyst upgraded the stock to "Buy," saying that the stock is attractive in the wake of a recent drop in its price.

Shares of Cincinnati-based Convergys, which manages customer service and human resources for companies, rose 86 cents, or 9 percent, to finish trading at $10.38. The stock fell 16 percent between late September and the end of trading on Friday.

In a Monday client note, Citi analyst Ashwin Shirvaikar raised his rating from "Hold" and kept his $12 price target. The analyst said the stock has declined about 16 percent due to "technical factors" like the issuance of convertible debt.

He expects investors to see the stock price rebound to near $11 — a price that "already seemed to reflect (Convergys') risks," he said.

The analyst also expects that issues like the impact of the economy on Convergys' call center unit and the impact of client losses in its billing unit will be resolved or become lesser problems in the next year.

"However, there is no denying that the next one to two quarters are likely to be tough," he said.