- Diebold Nixdorf ( NYSE: DBD ) rose 8% pre-market , Friday, after Wedbush upgraded the financial-retail technology firm to Outperform from Neutral on the increased likelihood of sale.
- The projection is based on company's strong product order flow and expected easing of supply constraints, which have posed the largest headwinds for DBD in the recent quarters.
- The price target remains at $5 by Wedbush analyst Matt Bryson, who wrote DBD is well-positioned to grow revenues through 2022 into 2023 even assuming a "difficult" macro trends alongside the company's cost initiatives set to bolster margins.
- However, analyst sees a "substantial risk" pertaining to DBD's debt issues where we are talking about the company with over $2B in debt . Bryson said "if DBD is able to navigate the next 9 month successfully, we see a path to double digit valuation again assuming it returns to the prior trajectory management."
- The research firm wrote all the downside risk is fully reflected in the current stock price, trading close to its 52-week low of $2 vs. a 52-week high of nearly $14.
- While average Wall Street's rating give a Buy to DBD, Seeking Alpha Quant Rating System flag a Sell with warning issued on June 29, 2022: DBD is at high risk of performing badly
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Diebold Nixdorf gains after Wedbush upgrade on potential for sales against macro headwinds