Morgan Stanley Expects FCF Conversion to Drive Stock Performance for NCR Corporation

In a report published Thursday, Morgan Stanley analyst Katy L. Huberty reiterated an Equal-Weight rating on NCR Corporation NCR. In the report, Morgan Stanley noted, “SOTP is increasingly in focus in light of activist involvement and Micros acquisition and yields 64% upside to stock price based on EBIT, but only 10% on FCF. We look for material signs of strategic action to get behind SOTP thesis and view better FCF conversion as more central to stock performance.” NCR Corporation closed on Wednesday at $32.63.