NCR shares jump after JP Morgan upgrade

AP News
Posted: Dec 11, 2009 2:58 PM

Shares of NCR Corp. headed higher Friday after the maker of ATMs, checkout scanners and self-serve kiosks was upgraded by a JPMorgan analyst who predicted a revenue boost from Blockbuster kiosks the company makes.

Analyst Paul Coster upgraded NCR to "Overweight" from "Neutral" but lowered his target price to $15 from $16.

He said NCR will likely get a revenue boost from Blockbuster Express machines it installs, even as its ATM operations stay flat. Coster said the company can "still eke out" a 5 percent sales growth in 2010.

Nonetheless, he said the company's core business _ ATMs _ remains weak.

"End market conditions have not changed since the (third-quarter) conference call; retail is still very weak, but stable; financial services is stable and improving slowly," the analyst wrote in a note to investors. He doesn't expect the company's retail and ATM businesses to see much growth through 2013.

He did say there is room for positive developments, such as reaccelerating ATM deployments in Eastern Europe and market share gains in Brazil.

As such, next year's revenue growth will come largely from its DVD kiosk business.

Shares rose 92 cents, or 9.4 percent, to $10.71 in afternoon trading. The stock has traded between $6.62 and $15.23 in the past 52 weeks.