Benchmark Co. Thinks NCR Corp’s Stock is Going to Recover


Benchmark Co. analyst Daniel Kurnos maintained a Buy rating on NCR Corp (NYSE: NCR) today and set a price target of $44. The company’s shares closed on Friday at $31.06, close to its 52-week low of $29.20.

Kurnos said:

“We expect results will at least match the mid-point of guidance (consensus revenue is modestly below, EPS a penny above), but we suspect that, given trends in the space, full-year results will once again largely rely in 2H18 strength despite an easy ATM comparison in 2Q. At some point, the Windows 10 refresh cycle will provide a tailwind before the end of 2019, which gives us comfort in our medium-term outlook. However, we do anticipate some increased quarterly revenue volatility near-term, although EPS should be supported by cost cuts, mix shift benefits and share repurchases. Furthermore, at 8x 2019E EPS and 5x EV/EBITDA, shares seem to reflect a fairly bleak outlook already. Despite the longer-tailed branch transformation and Windows 10 tailwinds, headlines around bank CapEx uncertainty and footprint reductions are likely to continue weighing on the space.”

According to TipRanks.com, Kurnos is a 4-star analyst with an average return of 9.3% and a 50.4% success rate. Kurnos covers the Services sector, focusing on stocks such as Chicken Soup For The Soul Entertainment Inc, Sinclair Broadcast, and 1-800 Flowers.com.

NCR Corp has an analyst consensus of Moderate Buy, with a price target consensus of $47.50.

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NCR Corp’s market cap is currently $3.79B and has a P/E ratio of 36.98. The company has a book value ratio of 5.2703.

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NCR Corp. engages in the development, manufacture and sale of consumer transaction solutions. It operates through the following segments: Software, Services and Hardware. The Software segment includes industry-based software platforms, applications and application suites for the financial services, retail, hospitality and small business industries.

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