(NCR) shares were trading higher Tuesday after Robert W. Baird analyst Reik Read upped his rating on the stock to Outperform from Neutral. His price target increases to $31 from $26. Read raised his 2008 EPS estimate to $1.54 from $1.52; for 2009 he goes to $1.80 from $1.73.
Read says the upgrade follows a survey of bank ATM managers which “showed a positive North American ATM environment.” This is despite the current troubles in the U.S. banking sector. “Despite ongoing bank challenges, bank personnel tell us capital is available for ATM upgrades.”
He also reports that “conversation with management revealed that NCR continues to receive orders for POS and self-service systems from larger customers.” Reid also contends the company has additional opportunity in the international ATM segment. Read sees margin improvement driven by NCR’s cost-cutting program.
NCR was up 57 cents, or 2.2%, to $26.37.