Analysts rate NCR Corp. (NCR:NYE) with a Strong Buy rating and a $40 target

Based on the NCR stock forecast from 3 analysts, the average analyst target price for NCR Corp is USD 40.00 over the next 12 months. NCR Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of NCR stock forecast is Bearish, which is based on 3 positive signals and 11 negative signals. At the last closing, NCR stock price was USD 29.11NCR stock price has changed by -1.92% over the past week, -4.41% over the past month and -25.78% over the last year.

 

About NCR Corp. (NCR:NYE):

NCR Corporation provides various software and services worldwide. It operates through Banking, Retail, Hospitality, and Telecommunications and Technology segments. The company offers managed services and ATM-as-a-Service that allow banks to run their end-to-end ATM channels; software, services, and hardware; and digital banking solutions for financial institution’s consumer and business customers. The company also offers solutions for customer account opening and onboarding across digital, branch, and call center channels. NCR Corporation was founded in 1881 and is headquartered in Atlanta, Georgia.

 

Most Recent Analyst Ratings for NCR’s Stock:

 

 

What we like:

Underpriced on cashflow basis:

NCR stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Low market capitalization:

NCR stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

NCR stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity:

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization:

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets:

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

NCR stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

NCR stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

NCR stock has shown below median revenue growth in the previous 5 years compared to its sector.