The company is transforming into a leaner operation, and one pundit thinks that’s a big step in the right direction.
Retail fintech company NCR Voyix (VYX 0.47%) was the subject of a new and rather positive analyst note at the start of the week, and this set the tone for subsequent trading days. As of early Friday, before market open, the company’s share price had risen by more than 15% week to date, according to data compiled by S&P Global Market Intelligence.
The stock has nearly 50% potential upside, says analyst
The NCR Voyix bull was Oppenheimer prognosticator Ian Zaffino. Late on Monday, Zaffino issued a new research report on the company, reiterating his outperform (buy, in other words) recommendation and price target of $19 per share. At the most recent closing share price, this suggests NCR Voyix stock has potential upside of 48%.
Zaffino’s move comes after his company hosted NCR Voyix David Wilkinson at a tech industry conference. During the event, NCR Voyix’s top brass discussed at some length their sale of the company’s digital banking unit. Announced earlier this month, the deal is for NCR Voyix to sell the unit to a firm called Veritas Capital for a base price of $2.45 billion.
In a new research note, the analyst wrote that the proceeds of the sale will notably improve the seller’s balance sheet. It will also, in his words, become “a pure-play leader in retail and restaurants.”
Possibly more where that came from
In announcing the deal with Veritas, NCR Voyix said it is part of its efforts to slim down into a more streamlined and focused company. If the transaction goes smoothly, NCR Voyix will be eligible to earn up to an additional $100 million in future consideration. It anticipates the transaction will close by the end of this year.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
