NCR Atleos, LLC (NATL) has received a new Hold rating, initiated by Stifel Nicolaus analyst, Shlomo Rosenbaum.
Shlomo Rosenbaum has given his Hold rating due to a combination of factors regarding NCR Atleos, LLC’s market positioning and financial projections. Notably, the limited potential for growth in the number of ATMs and the reliance on monetizing the existing fleet are key considerations. Although Rosenbaum acknowledges the potential for modest revenue growth and expanding margins through NCR Atleos’s higher-margin offerings, such as ATM as a Service (ATMaaS), he also points out the uncertainty in the market’s adoption rates of these services. The fluid development of the ATMaaS market, along with the company’s efforts to transition to higher revenue per unit in its Allpoint network and to de-leverage its balance sheet, contribute to the Hold rating.
Rosenbaum’s analysis also considers the company’s competitive landscape and uses valuation metrics from comparable companies to arrive at a $31 target price. He indicates that a more favorable outlook could emerge if there were greater certainty in the company’s estimates and the overall evolution of the ATMaaS industry. The potential for the company to return capital to shareholders after reducing leverage is noted as a positive aspect. However, given the current stage of NCR Atleos’s business development and the dynamic nature of the market, Rosenbaum maintains a neutral stance with a Hold recommendation, reflecting a cautious optimism tempered by prevailing market uncertainties.
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NCR Atleos, LLC (NATL) Company Description:
NCR Atleos Corporation is a financial technology company providing self-directed banking solutions to a global customer base, including financial institutions, merchants, manufacturers, retailers and consumers. The Company’s solutions enable the acceleration of self-directed banking through ATM and interactive teller machine (ITM) technology, including software, services, hardware and its Allpoint network. The Company manages its operations in three segments: Self-Service Banking, Payments & Network, and Telecommunications and Technology (T&T). Self-Service Banking offers solutions that include a comprehensive line of ATM hardware and software, and related installation, maintenance, and managed and professional services. Payments & Network offers access to its Allpoint retail-based ATM network. T&T offers managed network and infrastructure services to enterprise clients across all industries via direct relationships with communications service providers and technology manufacturers.
