UPDATE: Morgan Stanley Downgrades NCR Corp. (NCR) to Equalweight

Morgan Stanley analyst Erik Woodring downgraded NCR Corp. (NYSE: NCR) from Overweight to Equalweight with a price target of $27.00 (from $38.00).

The analyst comments "Ultimately, the question we are left asking ourselves is - will the market put aside these risks, view this transaction as value-enhancing, and re-rate shares over the next 12 months? We are less convinced on this front, and therefore downgrade NCR to Equal-weight (from Overweight) with a new $27 price target (down from $38) - which represents a blend of a P/E-driven valuation and our updated SoTP-based valuation (details below). In the near-term, we expect shares to be range-bound until we get greater clarity on the key details of the spin transaction. And while we acknowledge value could potentially be unlocked longer-term, we believe it pays for investors to have patience, given the lack of historical outperformance prior to the spin date (which is ~15 months away) when risks are elevated."

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

Shares of NCR Corp. closed at $23.20 yesterday.

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