NCR Corporation (NCR)

Given its robust business model, aggressive cost-cutting measures and new business initiatives, we expect NCR Corporation (NCR - Analyst Report) to resume growth across segments later this year. This should be sustainable for the foreseeable future as its customers seek to cut costs through increased automation.

However, NCR experienced a significant drop off in business activity in the retail segment in the second half of 2008 as well as in the first quarter of 2009. The new offer worth $13.0 million from Georgia state, coupled with a new facility addition in Brazil will help the company going forward.

Meanwhile, the company has a sound balance sheet and generated moderate cash flows in Q1. We maintain our Buy rating on NCR shares but increase our six-month price target to $14.00, after factoring in the economic environment.