Matt Summerville, an analyst from D.A. Davidson, reiterated the Buy rating on NCR Atleos, LLC (NATL – Research Report). The associated price target remains the same with $48.00.
Matt Summerville has given his Buy rating due to a combination of factors positioning NCR Atleos, LLC for future growth and value. The company’s transition towards an As-A-Service model is expected to drive higher margins, EBITDA, and EPS growth, making it appealing to value investors. Summerville is particularly optimistic about the potential for self-service banking to act as a significant growth driver, with ATMaaS recycling showing promising ROI and expansion opportunities both domestically and internationally.
Additionally, the company’s transactional trends are positive, with new client acquisitions and geographic expansion contributing to favorable withdrawal trends. From a financial perspective, NCR Atleos aims to reduce its net leverage to 3x or less by mid-2025, potentially allowing for share repurchases. The firm also benefits from a substantial free cash flow yield, and Summerville highlights the attractive valuation at 5.4x EV compared to historical demand of 7-9x EBITDA, supporting his Buy recommendation.
According to TipRanks, Summerville is a 4-star analyst with an average return of 9.5% and a 56.51% success rate. Summerville covers the Industrials sector, focusing on stocks such as Crane NXT, Symbotic, and Barnes Group.
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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.
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