NCR Voyix stock price target cut to $15 by Needham

On Thursday, Needham analysts maintained a positive outlook on NCR Voyix (NYSE: NYSE:VYX) shares, despite lowering the price target from $20.00 to $15.00. The firm continues to endorse a Buy rating for the company’s stock, joining other analysts who maintain targets ranging from $14.50 to $20.00. Currently trading at $11.50, near its 52-week low of $10.87, InvestingPro analysis suggests the stock may be undervalued. The adjustment follows the release of NCR Voyix’s fourth-quarter results, which were deemed strong in light of recent challenges, including the spinoff of NATL and the termination of certain contracts.

NCR Voyix’s fourth-quarter performance showcased a 5% year-over-year increase in accelerating Annual Recurring Revenue (ARR) trends, bolstered by growth in both the retail and restaurant sectors, at 5.7% and 4.1% respectively. The company’s management has been successful in acquiring new clients and transitioning existing ones to its cloud-based platform, contributing to the expansion of active sites. With a market capitalization of $1.7 billion and a current ratio of 1.2, the company maintains a stable financial position despite challenging market conditions.

The fiscal year 2025 outlook for NCR Voyix remains robust, although it now accounts for gross hardware revenue due to the delay in the Ennoconn Original Design Manufacturer (ODM) agreement becoming operational. Needham’s analysts highlighted the company’s attractive valuation, which is approximately 5.5 times their fiscal year 2026 EBITDA estimate.

In their commentary, Needham analysts expressed satisfaction with the company’s ability to navigate through the headwinds and continue to add new logos while transitioning customers to its cloud-based solutions. This strategic move is seen as a key factor in the company’s ability to scale effectively.

The revised price target of $15.00 by Needham reflects a recalibration based on broader market valuations, yet the firm’s reiteration of the Buy rating indicates confidence in NCR Voyix’s fundamentals and market position. InvestingPro data reveals several additional insights about NCR Voyix’s market position and future prospects, with 6+ exclusive ProTips available to subscribers. Access the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US equities, for deeper analysis and actionable intelligence.

In other recent news, NCR Corp reported its fourth-quarter 2024 financial results, surpassing earnings per share (EPS) expectations with a reported EPS of $0.22, exceeding the forecasted $0.13. Despite a slight revenue shortfall, the company recorded $682 million against the expected $684.28 million, marking a 14% year-over-year decline. The company’s adjusted EBITDA saw a significant increase of 75%, highlighting improved operational efficiency. NCR’s strategic shift towards software and services continues, with software revenue experiencing a modest decline of 3%. The company is also exiting certain one-time software licenses and services, aiming to improve its recurring revenue composition to 80%. In 2025, NCR projects currency-neutral revenue between $2.575 billion and $2.650 billion, with anticipated adjusted EBITDA growth of 21-28%. Analyst firms have not recently issued upgrades or downgrades for NCR Corp. These developments reflect NCR’s ongoing transition and strategic focus on growth areas.

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