Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian
GET TICKETS

ATM Market & NCR 2015 Preview: 'Currency And European Market To Drive Declines,' Wedbush Says

Share:

In a report issued Sunday, Wedbush analysts Gil Luria and Aaron Turner previewed the automated teller machines (ATM) market for 2015.

They expect to see the ATM market "decline by 4 percent in U.S. dollar terms" (despite delivering a 4 percent growth in local currency), as a strengthening dollar could drive declines of 20 to 25 percent in Europe. According to the note, "Wincor's negative preannouncement on Friday indicates the European market may decline beyond the weakening Euro."

Within the industry, the analysts look into NCR CorporationM (NYSE: NCR), which the analysts think "can achieve low-single-digit organic revenue growth and mid-single-digit earnings growth going forward." However, "the latest currency declines and market trends will lead to further reduction in estimates."

In this occasion, Wedbush trimmed its 2015 and 2016 EPS estimates from $2.71 to $2.63, and from $2.86 to $2.78, respectively, on the back of the aforementioned weakness in the European market and the strengthening U.S. dollar. Revenue estimates were also cut for 2015 and 2016, from $6.601 billion to $6.433 billion, and from $6.859 billion to $6.686 billion, correspondingly.

The firm believes "shares have ascended in anticipation of corporate action, based on high-profile activist investors." Nonetheless, "the available corporate action is unlikely to generate the value to justify such appreciation (…) [and] believe a sale of the software businesses will generate less value than the current share price. Other types of corporate changes could result in further reductions in EPS guidance closer to the company's much lower FCF/share."

Wedbush reiterated a Neutral rating and a $22 price target on NCR shares.

Latest Ratings for NCR

DateFirmActionFromTo
Mar 2019DowngradesOverweightNeutral
Jan 2019UpgradesNeutralBuy
Jan 2019UpgradesNeutralBuy

View More Analyst Ratings for NCR
View the Latest Analyst Ratings

Posted-In: Aaron Turner ATM Gil Luria WedbushAnalyst Color Eurozone Reiteration Analyst Ratings

 

Related Articles (NCR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
PROUpgrades50.0
HEIUpgrades
PMUpgrades82.0
GILDUpgrades
AMGNUpgrades205.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

What Gaming Investors Need To See Before Earnings

KeyBanc: Apple Watch Has 'Strong' Initial Demand, Poses Risk To Fashion Watches