Morgan Stanley Sees Focus on FCF Conversion as Long-Term Positive for NCR

In a report published Friday, Morgan Stanley analyst Katy L. Huberty reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Another quarter of meaningful revenue miss and light 2014 EPS guidance disappointed, but we view management's focus on strengthening FCF as a positive that might improve confidence in EPS sustainability and close the P/E to EV/FCF valuation gap longer-term.” NCR closed on Thursday at $34.98.