DA Davidson Analyst Matt Summerville upgraded NCR Corp. to "buy" from "neutral," citing NCR's leadership changes and the company's commitment to a cost-reduction initiative announced in 2018.
The analyst expects NCR to return to positive organic growth in 2019, owing to technological upgrades undertaken by the company as well as new products launched in 2018.
NCR has recently closed down a manufacturing plant in China and is expected to close another two in Georgia, Summerville wrote. The cost-cutting moves are likely to help the company realize its objective of saving at least $100 million by cutting costs, the analyst said.
"We expect the $100 [million] objective, all actions considered, will end up being quite conservative," the analyst wrote.
A more favorable ATM industry in general also supports the upgrade, he added.
Summerville raised his price target on the stock to $30. He set an EPS estimate for the 2019 year of $2.80.