On Monday, Goldman Sachs initiated coverage on stock of NCR Voyix (NYSE: NYSE:VYX), assigning a Neutral rating and establishing a price target of $14.00. The new price target suggests an 11% upside potential for the stock. The firm acknowledged the mixed fundamentals within NCR Voyix's three business segments, which include Retail, Restaurants, and Digital Banking.
The coverage notes that while the company faces a challenging fundamental setup, there are strategic options available that could potentially enhance shareholder value. This perspective comes after NCR Voyix completed the spin-off of its ATM business into a separate publicly traded entity, NCR Atleos. The action indicates the company's openness to strategic moves that may benefit its stockholders.
The analyst pointed out that NCR Voyix's stock is currently trading at an attractive valuation of approximately 6 times its estimated 2024 EBITDA. This valuation is seen as very inexpensive by the firm. The initiation of coverage and the setting of the price target come as NCR Voyix continues to navigate its business environment and explore strategic opportunities.
In the report, Goldman Sachs elaborated on the company's situation and its potential to leverage strategic actions to improve its market standing. Despite the recognition of the challenges faced by NCR Voyix, the firm's setting of a Neutral rating indicates a balanced view on the stock's prospects.
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