NCR Atleos initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of NCR Atleos with a Neutral rating and $23 price target. The analyst sees near-term hardware revenue headwinds associated with the company’s migration and execution risk as ATM-as-a-service revenue comprises only 4% of total revenue today. NCR’s current valuation fairly captures this execution risk, as well as the company’s lower growth and margins, higher financial leverage and lower free cash flow conversion relative to peers, the analyst tells investors in a research note.