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 NCR NCR. 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.