Convergys Corp. is well-positioned to grow share in an industry inviting to growth, said Barrington analyst Vincent Colicchio, who initiated coverage of the company with a "market perform" rating.

The company is targeting the global contact center outsourcing market, which a study indicates has a 21% penetration rate, Colicchio wrote in an Oct. 17 research note to clients. Despite challenges from its largest customers, Convergys has competitive advantages and should benefit from the growing interest in vendor consolidation, he said.

"The company's strong brand, solid references, large geographic footprint and broad service offering provide significant competitive advantages when selling to large enterprises," Colicchio said.

Convergys has the geographic scale and broad service offerings to provide the consistent customer service experience that more large companies are looking for, the analyst said.

Colicchio set his third-quarter EPS estimate at 44 cents and his full-year EPS estimates at $1.88 for 2017 and $1.94 for 2018.