Diebold Nixdorf stock target raised to $80 at DA Davidson

Published 27/02/2025, 13:02
Diebold Nixdorf stock target raised to $80 at DA Davidson

On Wednesday, DA Davidson reaffirmed its positive stance on Diebold Nixdorf (NYSE:DBD) shares, raising the price target to $80 from the previous $65 while maintaining a Buy rating. Currently trading at $44.56, InvestingPro analysis suggests the stock is undervalued. The revision followed Diebold Nixdorf’s 2025 Investor Day held in New York City, which was the company’s first event of this kind in several years.

The firm’s analyst, Matthew Summerville, attended the event on Tuesday and noted Diebold Nixdorf’s presentation of what he considers to be achievable long-term financial goals extending through 2027. With a market capitalization of $1.67 billion and strong free cash flow of $131.8 million, Summerville was particularly impressed by the company’s emphasis on effective balance sheet management, significant strides in free cash flow generation, and plans to return capital to shareholders through buybacks.

According to Summerville, Diebold Nixdorf’s daily operations continue to prioritize lean implementation and continuous improvement (CI) tools. The company is also looking to expand its total addressable market (TAM), benefit from favorable industry cycles, and capture pricing opportunities to drive revenue growth. He labels the stock as a "high conviction idea," signaling strong confidence in Diebold Nixdorf’s prospects.

Diebold Nixdorf’s Investor Day provided insights into the company’s strategic direction and operational focus, which seem to align with DA Davidson’s positive outlook. The firm’s updated price target suggests a significant upside from Diebold Nixdorf’s current trading levels, reflecting the belief in the company’s potential for growth and value creation for shareholders.

In other recent news, Diebold Nixdorf announced its fourth-quarter 2024 financial results, which fell short of market expectations. The company reported an earnings per share (EPS) of $0.97, which missed the forecasted $1.44. Additionally, revenue for the quarter was $988.9 million, below the anticipated $1.03 billion. Despite these setbacks, Diebold Nixdorf achieved a full-year revenue of $3.75 billion and reported a significant improvement in free cash flow, reaching $109 million. Analyst firms have not yet publicly adjusted their ratings, but the earnings miss may influence future evaluations. The company has projected flat to low single-digit revenue growth for 2025, with an expected adjusted EBITDA between $470 million and $490 million. Diebold Nixdorf continues to focus on operational improvements and has announced a new $100 million share repurchase authorization as part of its capital allocation strategy.

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