Spinoff spotlight: NCR Corp.

Article Excerpt

NCR CORP. $22 is a buy for aggressive investors. The company (New York symbol NCR; Manufacturing & Industry sector; Shares outstanding: 136.9 million; Market cap: $3.0 billion; No dividend paid; Takeover Target Rating: Medium; www.ncr.com) makes automated teller machines (ATMs), cash registers, self-serve checkouts and kiosks for theatres and arenas. The stock dropped over 20% after private-equity firm Veritas Capital dropped its plan to buy the company. That’s because rising interest rates have increased the cost to finance the takeover. As a result, NCR will now break itself up into two separate companies—one will focus on ATMs, and the other will focus on digital commerce businesses. It expects to complete the transaction by the end of 2023. The ATM business is growing slowly, but generates steady cash flow from servicing and upgrading those machines. The outlook for the digital commerce unit is also bright, as its software helps its clients improve efficiency and cut costs. NCR is a buy for aggressive investors. investors…

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