D.A. Davidson & Co. analyst Matt Summerville upgraded Diebold Nixdorf Inc. to "buy" from "neutral," citing projected cost savings under the DN Now plan, which will benefit the company's bottom line.

The DN Now plan targets improvements in its daily operations to generate cost savings. Summerville said that around $250 million in savings will be generated by 2021, of which $130 million will come from a streamlined operation model; $70 million from a services modernization plan; and $50 million from supply chain improvements.

The analyst also believes that Diebold Nixdorf is formalizing efforts to further streamline general and administrative costs. They said that $50 million will be a reasonable starting point in projecting savings under these plans.

Diebold Nixdorf's price target is set at $5.