Compass Point Reiterates a 'Neutral' on Diebold (DBD) Following Analyst Day

February 24, 2012 11:46 AM EST
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Price: $25.70 +2.19%

Rating Summary:
    6 Buy, 3 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Compass Point reiterates a 'Neutral' on Diebold (NYSE: DBD) price target of $40.00.

Analyst, Douglas Greiner, said, "Accounting for 76% of 2011 total revenues, FSS is the core driver of performance and we expect managed service and deposit automation opportunities to drive healthy although moderate future growth on the services and product side of the business, respectively. Beyond FSS, within Security (21% of 2011 total revenues), Diebold is steadily building a reputation for having an expertise in creative integrated electronic security solutions and we expect growth to offset weakness in physical security. In terms of capital allocation (the hallmark and strength of the company), we note that since 2007 Diebold has return 40% of the $1.2 billion generated from operations to shareholders (30% through dividends and 10% through share repurchases). Based on the aforementioned fundamentals and capital allocation strategy, we consider Diebold to be a compelling investment. However, at current price levels, we consider the shares fairly valued and prefer to wait for a more attractive entry point (higher dividend yield)."

For an analyst ratings summary and ratings history on Diebold click here. For more ratings news on Diebold click here.

Shares of Diebold closed at $38.37 yesterday.

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