Goldman Sachs Reiterates Neutral Rating on NCR Atleos Corp. (NATL)

Goldman Sachs analyst George Tong reiterated a Neutral rating and $29.00 price target on NCR Atleos Corp. (NYSE: NATL)

The analyst comments "NCR Atleos reported solid 2Q results, with EBITDA margins and EPS surpassing our estimates and consensus, revenue coming essentially in-line with the Street, and the full year guide reaffirmed. NATL is making incremental progress with its ATMaaS strategy and converted 1.3k units to the new model in 2Q, with roughly half being ATMaaS light deployments that involve only software and services and carry less capital intensity. The Self-Service Banking segment also effectively sold software and services as traditional deployments, while the Network segment benefited from withdrawal volume growth and new service offerings. We believe NATL’s ATMaaS strategy can expand the addressable market, increase revenue growth and stickiness, and strengthen margins over the long-term. That said, we acknowledge the transition remains in its early stages, with ATMaaS revenue growing ~30% y/y but representing only 4% of revenue and the company’s 2024 guide assuming a back-end weighted ramp in deployments to reach 30k ATMaaS units by year-end. Maintain Neutral."

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

Shares of NCR Atleos Corp. closed at $29.40 yesterday.

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