NCR Corporation (NCR), a provider of financial software and payment services for different business areas, this month held an investor day during which it presented a forecast for future periods. Several Wall Street analysts immediately enhanced their forecasts for the NCR shortly after that event.
The business model of the company has evolved significantly in recent years, according to NCR’s management, which has allowed them to improve the company’s financial performance. The management also commented on the shift to the sale of subscription services, which gives the business a constant income. The Vision Software-as-a-Service (SaaS) is a self-service device management solution launched about a year ago that is also driving the development of NCR. It gives banks and other financial institutions the ability to manage ATMs and other terminals while providing greater transparency and a more flexible configuration.
However, NCR was affected by some negative trends from the COVID-19 pandemic. The company provides services to the hotel business in particular, which has been severely affected by travel bans. The hotel business, however, may also return to its previous sales volumes as the economy recovers.
The leadership of NCR confirmed its forecast presented several months ago. In particular, the company is on track to achieve annual cost savings of between $125 million and $150 million and expects end-market improvements by 2021.
Several analysts immediately improved their forecasts for NCR after the investment day. So, Oppenheimer confirmed the “Outperform” recommendation and raised the target price from $25 to $35. With a similar recommendation, Morgan Stanley raised the target price to $42. The target price was raised by analysts at RBC Capital to $41, and at J. P. Morgan at $34.
NCR Corporation (NCR) stock jumped
3.83% on Thursday to close the session at $35.01. The current price level is
almost equal to (-0.43%) to that at beginning of the year.