Stifel cuts Voyix stock price target to $15, maintains Buy rating

On Wednesday, Stifel analysts adjusted the price target for NCR Voyix (NYSE:VYX), reducing it to $15 from the previous $17, while reaffirming their Buy rating on the company’s shares. According to InvestingPro data, the stock appears undervalued, with analyst targets ranging from $14.50 to $20.00. The revision follows the announcement that James G. Kelly has taken the helm as President and Chief Executive Officer with immediate effect, amid a period of high market volatility for the stock (Beta: 1.7).

Kelly steps into the role succeeding David Wilkinson, who has resigned from his positions as President, CEO, and Board member. The company made this leadership change public on the same day. Alongside this executive shift, NCR Voyix reassured investors and analysts by reiterating its financial outlook for the upcoming year, though InvestingPro analysis indicates analysts anticipate a sales decline in the current year.

The company’s commitment to its previously stated revenue and adjusted EBITDA guidance for 2024 remains unchanged despite the transition in its executive team. This affirmation may provide some stability to shareholders amidst the changes in leadership.

As investors look ahead, NCR Voyix has scheduled its fourth-quarter earnings report for February 27, 2024. For deeper insights into NCR Voyix’s financial health and valuation metrics, InvestingPro subscribers can access the comprehensive Pro Research Report, available for over 1,400 US stocks. The forthcoming financial results will offer further insights into the company’s performance and may impact future valuations and analyst expectations.

While the price target has been lowered, Stifel’s analysts continue to see value in NCR Voyix, as evidenced by the maintained Buy rating. The firm’s commentary did not elaborate on the specific reasons for the price target reduction but noted the leadership changes and the company’s steady guidance as key points of consideration.

In other recent news, NCR Voyix Corporation, a leader in commerce solutions, announced significant strategic shifts. The company reported its third-quarter earnings, with total revenue standing at $708 million, marking an 11% decrease from the previous year. This drop was primarily due to a slump in hardware sales. However, the company completed the sale of its digital banking business, leading to a substantial debt reduction and initiating a $100 million share repurchase program.

In addition to these financial developments, NCR Voyix Corporation disclosed that it has granted long-term stock incentive awards to several top executives, including CEO David Wilkinson and Executive Chair of the Board, James Kelly. These awards are part of the company’s strategic initiatives and transformation efforts, which include the restructuring of its hardware business and leverage reduction initiatives.

These recent developments underscore NCR Voyix’s commitment to growth and aligning executive compensation with performance and shareholder value. As part of their restructuring efforts, the company is also investing in cloud solutions and revising sales strategies to capture market share. The company maintains its revenue guidance for 2024 at $2.805 billion to $2.860 billion.

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