Virus forces ATM makers to adapt

Article Excerpt

Sales of traditional ATMs will likely suffer over the next few years as COVID-19 prompts more people to bank online. However, ATM manufacturers NCR and Diebold are working on new “contactless” models that will let users withdraw cash using a code on their smartphone. That technology should also help their other businesses, like self-serve checkout terminals and kiosks. We still like the outlook for both, but NCR is the better choice for new buying. NCR CORP. $19 remains a buy. The company (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 127.8 million; Market cap: $2.4 billion; Price-to-sales ratio: 0.4; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines (ATMs), cash registers, self-serve checkouts and kiosks for theatres and arenas. Coronavirus-related lockdowns and travel restrictions have hurt demand for new equipment from hotels (the hospitality industry accounts for 12% of NCR’s sales). Meantime, demand from banks for ATMs and supermarkets for self-serve checkouts remains steady. Still, the company may have…

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