NCR Corp. Prospects Look Healthy

Continued momentum in the ATM business has driven growth and led NCR Corporation (NCR - Analyst Report) to post gains in its Financial Self-Service segment, its largest division.

We are encouraged that the company is posting earnings growth through improved top-line growth, which we believe is sustainable for the foreseeable future as its customers seek to cut costs through increased automation. The company has also been making a steady progress in the other business areas, such as Customer Service and Retail Automation. NCR is also targeting new industry verticals, for instance healthcare, travel and hospitality, to expand its market reach for self-service business.

Shares of NCR are currently trading at 13.2x our 2008 EPS estimate of $1.65, a discount to the industry mean as and median. Given the improved outlook for NCR, we maintain our Buy rating on the shares of NCR. Our six-month target price of $32.00 reflects a P/E multiple of 19.4x our 2008 EPS estimate, a large premium to the industry median.

Read the full analyst report on NCR