Stifel cuts NCR Voyix stock price target to $13, maintains Buy

On Monday, Stifel analysts adjusted their outlook on NCR Voyix (NYSE:VYX) by reducing the stock’s price target from $15.00 to $13.00, while still recommending a Buy rating. The stock, currently trading near its 52-week low of $7.67, has experienced a challenging period with a 40% decline over the past six months according to InvestingPro data. The decision comes after a detailed evaluation of the company’s financial model, taking into account a projected increase in revenue and profit towards the latter part of the year. This shift aligns with the company’s own projections shared during its fourth-quarter earnings discussion.

The analysts at Stifel also addressed the potential impact of tariffs on NCR Voyix, noting that the effects might be less severe than initially anticipated. This assessment is despite the company’s significant dependence on hardware manufacturing operations in Mexico. With current gross profit margins at 21.94% and projected revenue decline of 8% for FY2025 according to InvestingPro data, the analysts expect that the transition to an Original Design Manufacturer (ODM) model through a partnership with Ennoconn, slated for the second half of the year, will mitigate supply chain concerns and their influence on NCR Voyix’s financial performance in the medium to long term.

Despite the lowered price target, the analysts reaffirmed their positive stance on NCR Voyix’s stock. They believe that the company’s strategic moves, including the ODM model transition, will have a limited impact on its financials, except for any potential effects on the end markets. This is an important consideration for investors as they weigh the company’s prospects against a backdrop of evolving market conditions.

Stifel’s revised price target reflects a new valuation multiple, which suggests a more conservative estimation of the company’s market value. The adjustment in the price target to $13 is a direct response to this recalibrated valuation approach, even as the analysts maintain their confidence in the company’s overall growth trajectory.

Investors following NCR Voyix will be looking ahead to the second half of the year when the partnership with Ennoconn is expected to commence, potentially offering a new phase of operational efficiency and financial stability for the company.

In other recent news, NCR Atleos reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $1.11, surpassing the consensus of $0.80. However, the company’s revenue was slightly below estimates, coming in at $1.11 billion compared to the expected $1.16 billion. For the full year 2024, NCR Atleos achieved a 3% year-over-year revenue increase to $4.3 billion, with recurring revenue growing by 5% to $3.1 billion. Looking forward, the company anticipates 2025 core revenue growth of 3-6% and adjusted EBITDA growth of 7-10%.

Meanwhile, NCR Voyix has received varying analyst assessments. Stifel analysts revised their price target for NCR Voyix to $13, down from $15, while maintaining a Buy rating, reflecting a shift in revenue expectations. Despite this adjustment, the analysts believe the company’s strategic shift to an Original Design Manufacturer model will mitigate supply chain issues. On the other hand, DA Davidson maintained a Buy rating for NCR Voyix with a $17 price target, noting the company’s strong balance sheet and consistent Annual Recurring Revenue growth. The analyst emphasized the attractiveness of the current stock valuation despite revised growth and margin estimates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.