Gabelli Has Buy Rating On NCR

Gabelli is out with a research report on NCR (NYSE: NCR) and it has a Buy rating on shares.

In a note to clients, Gabelli & Co. writes, "On July 11, NCR agreed to acquire Radiant Systems through a cash tender offer of $28 per share, or $1.1 bn. NCR is paying 17x Radiant's 2011 expected EBITDA of $61 mm. NCR plans to leverage its strong distribution capabilities to grow Radiant Systems both in the US and internationally.

NCR also hopes to improve its revenue growth and margin profile with the Radiant acquisition. Notably, Radiant's gross margins are roughly 46% compared to 22% for NCR, given its value-adding technology and products and sizable service revenues, which tend to have higher gross margins than that of equipment."

Shares of NCR closed at $19.06 yesterday.

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