NCR - Diebold Nixdorf slips as J.P. Morgan downgrades after 'low quality' Q2 report
- Diebold Nixdorf ( NYSE: DBD ) shares fell nearly 5% in premarket trading on Friday as investment firm J.P. Morgan downgraded the financial technology company, noting its second-quarter results were "low quality."
- Analyst Paul Chung lowered his rating on Diebold ( DBD ) to underweight from neutral, noting that the company's management left its EBITDA and free cash flow guidance unchanged, despite the fact it lowered revenue guidance, citing "material" foreign exchange headwinds.
- "We see elevated risks to hitting guidance, in another heavily back end loaded year," Chung wrote in a note to clients.
- The analyst added that Diebold ( DBD ) is trading at a valuation to competitor NCR ( NCR ), despite lower operating profit margins, a more complex capital structure and "limited" free cash flow.
- Earlier this month, Diebold Nixdorf ( DBD ) rallied sharply despite the fact it lowered its revenue guidance for the full-year .
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Diebold Nixdorf slips as J.P. Morgan downgrades after 'low quality' Q2 report