Diebold (DBD) Hunt for New Leadership May Create Opportunity

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Yesterday morning Diebold (NYSE: DBD) pre-announced disappointed Q4 results. The slowdown was blamed on softness in the U.S. regional bank space and "associated declines in non-contract-based service work". In addition, the company blamed higher costs.

Diebold also announced yesterday that its CEO, Thomas W. Swidarski, was stepping down and the company was in the process of finding a replacement.

Commenting on the developments, analyst Michael Kim of Imperial Capital said, "While near-term execution has been disappointing, we remain positive on the company's long-term growth potential in deposit automation, emerging markets, and electronic security."

Kim thinks the departure of CEO Swidarski will be viewed a welcome opportunity by investors, as fresh leadership could provide a catalyst for the stock.

Imperial Capital has an Outperform on Diebold with a modified price target of $36.00 (from $39.00).

For an analyst ratings summary and ratings history on Diebold (NYSE: DBD) click here. For more ratings news on Diebold click here.

Shares of Diebold closed at $29.91 yesterday, with a 52 week range of $27.66-$42.93.

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