Short of a name change, it's likely going to take a long time before investors stop thinking of NCR (NCR)
primarily as a manufacturer of ATMs and retail self check-out kiosks.
After all, that's what we all see on a day to day basis when we go to
the bank or a store. There's a great deal more to the story, though, as
NCR has invested significantly in its services and software
capabilities.
With the acquisitions of Digital Insight and Alaric
Systems, announced on Monday evening, NCR has significantly accelerated
that transition towards a service and software-oriented company. The
deals are expensive in terms of multiples, but the potential from
operating synergies, cross-selling, and addressable market expansion
make them worthwhile. While there are areas of sluggishness in the
financial and retail spaces that threaten near-term performance, I
believe these shares of NCR remain meaningfully undervalued in a market
that offers few of those opportunities.
Follow this link for more:
NCR Hits The Throttle On Its Transformation Plan
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