On Tuesday, NCR Atleos Corp. (NYSE: NATL) received a new coverage from a Stifel analyst with a Hold rating and a $31.00 price target. The firm's analyst highlighted NCR Atleos's involvement in the sale and service of ATMs, including ATM as a Service (ATMaaS).
The assessment of NCR Atleos's market outlook suggests that the volume of ATMs is not expected to see significant growth, but the company is focused on monetizing its existing ATM fleets. The analyst anticipates modest revenue growth and margin expansion through higher-margin service offerings.
The Stifel report mentioned that a more positive stance could be considered with greater confidence in revenue estimates and industry development. The Hold rating and $31 price target reflect a cautious approach, waiting for more evidence of growth potential.
Recent Developments and Forecast
NCR Atleos has introduced a new feature allowing LibertyX customers to sell bitcoin and withdraw cash from ATMs across the U.S. The company reported Q2 earnings exceeding estimates, and Goldman Sachs has maintained a neutral rating, acknowledging strong performance and the potential of the ATMaaS model.
Looking forward, NCR Atleos has forecasted Q3 EPS of $0.71-$0.81 on revenue of $1.045-1.075 billion and revised its full-year 2024 guidance. These developments showcase the company's strategic transition and financial performance.
InvestingPro Insights
InvestingPro data suggests that NATL's net income is expected to grow, aligning with potential margin expansion and improving revenue growth. The stock has experienced a significant price uptick over the last six months, reflecting growing investor confidence.
However, NATL's high Price/Book multiple of 8.14 may indicate relative expensiveness compared to its book value. For a comprehensive analysis, InvestingPro offers additional tips and metrics to delve deeper into the company's financial health and market position.
This expert analysis provides valuable insights into NCR Atleos Corp.'s current position in the market and its potential for growth. Investors should consider the cautious approach by analysts and the company's strategic initiatives for future performance.