Market Overview

Wedbush's Luria: $10 Billion Bid For NCR 'May Be Too High'

Share:
Related NCR
Mid-Afternoon Market Update: Crude Oil Down Over 1.5%; NCR Shares Spike Higher
12 Biggest Mid-Day Gainers For Wednesday
Can 'Amazon Go' Revolutionize Brick-And-Mortar Retail? (Seeking Alpha)

Shares of NCR Corporation (NYSE: NCR) are soaring, up 11.2 percent on reports of a potential $10 billion dollar joint-bid from Blackstone Group LP (NYSE: BX) and The Carlyle Group LP (NASDAQ: CG), according to Reuters.

NCR Corp manufactures ATM machines, as well as cash registers.

In an exclusive interview with Benzinga, Gil Luria of Wedbush said, “It is likely there are multiple bids for NCR, however, a $10 billion bid may be too high considering it is 20 times cash flow.” Luria added that NCR holds inexpensive debt, making it harder for private equity firms to receive the benefits of refinancing.

NCR is expected to report earnings late next month, according to Estimize. The company last reported first quarter earnings per share of $0.43 versus estimates of $0.39, while booking a slight revenue miss.

Latest Ratings for NCR

DateFirmActionFromTo
Aug 2016JP MorganMaintainsOverweight
Jul 2016JP MorganMaintainsOverweight
Feb 2016JP MorganMaintainsOverweight

View More Analyst Ratings for NCR
View the Latest Analyst Ratings

Posted-In: Gil Luria WedbushAnalyst Color Exclusives Analyst Ratings Movers Interview

 

Related Articles (BX + CG)

View Comments and Join the Discussion!