Opinions
Don Lato
NCR Corp.
NCR-N
TOP PICK
Apr 10, 2014
Stock price when the opinion was issued
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(A Top Pick Nov 27/13. Down 20.78%.) Problems are twofold. Had some execution problems in the last quarter in getting some product out and have made some management changes to address that. A soft retail environment that persists in the US as well as some mergers among some of the major customers. At this price, he is looking at 8.5-9 X next year's earnings. Still great value here.
(A Top Pick April 10/14. Down 12.43%.) This got hit with a number of things. They were not a benefactor of the high US$, as a lot of their revenues come from offshore. Also, there have been a couple of major mergers in the retail industry with companies being preoccupied with getting the merger right, as opposed to buying new point-of-sale equipment.
Stockchase Research Editor: Michael O'Reilly NCR is a global leading point-of-sale and ATM software provider. Following recent earnings, it is trading at a PE of 6. With expectations of over 40% growth in EPS next year, this TOP PICK is good value. No doubt retail vendors have been impacted by the pandemic, however, the need for contact-less payment systems will only grow. Analysts at JP Morgan just upgraded the stock to overweight with a $27 target. We would trade this with a $18 stop-loss, looking to hit analyst targets -- over 30% upside. Yield 0% (Analysts’ price target is $27.00)
Does not understand why this stock has lagged so much. They took on additional debt. More and more the business is moving to software and the recurring revenue model.