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

Shares of NCR Corporation NCR are soaring, up 11.2 percent on reports of a potential $10 billion dollar joint-bid from Blackstone Group LP BX and The Carlyle Group LP 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.