Analysts’ Top Technology Picks: NCR, FISBy Ryan Adsit
There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on NCR Corp (NYSE: NCR) and Fidelity National Info (NYSE: FIS) with bullish sentiments.
NCR Corp (NYSE: NCR)
“NCR reported better than expected 1Q17 results with adjusted EPS of $0.56, vs. our/ Street’s $0.45/$0.46E. Revenue increased 9% YoY constant currency, with hardware up 15% YoY cc, software up 8% YoY cc and services up 4% YoY cc. NCR increased full-year guidance to: revenue of $6.63B-$6.75B (from $6.6B-$6.72B) and adjusted EPS of $3.32-$3.42 (from $3.27-$3.37). Roughly $0.02 of the increase is FX-driven and the rest is from the 1Q17 beat. Increase 2017E EPS to $3.37 from $3.32.”
According to TipRanks.com, Zaffino is a 5-star analyst with an average return of 5.9% and a 62.6% success rate. Zaffino covers the Services sector, focusing on stocks such as Macquarie Infrastructure Company, Bristow Group Inc, and Houghton Mifflin.
Currently, the analyst consensus on NCR Corp is Strong Buy and the average price target is $52.33, representing a 17.2% upside.
In a report issued on April 13, Benchmark Co. also initiated coverage with a Buy rating on the stock with a $55 price target.
Fidelity National Info (NYSE: FIS)
In a report released yesterday, Glenn Greene from Oppenheimer reiterated a Buy rating on Fidelity National Info (NYSE: FIS), with a price target of $85. The company’s shares closed yesterday at $81.57.
“Prior to FIS’s 1Q17 earnings release on 5/2, we affirm our Outperform rating and $85 price target. We expect several Y/Y growth headwinds to drag on 1Q17 growth (considered in our/Street’s estimates). However, recent sales results were strong, and we anticipate continued 4-5% SunGard growth. The SunGard integration remains ahead of schedule, and management is highly incentivized to drive cost synergies of as much as $325M (vs. current >$275M target). Furthermore, an improving macro backdrop could boost bank/FI discretionary spending, in time, in our view.”
According to TipRanks.com, Greene is a top 25 analyst with an average return of 17.6% and a 80.8% success rate. Greene covers the Technology sector, focusing on stocks such as Black Knight Financial Services, Automatic Data Processing, and Jack Henry & Associates.
Currently, the analyst consensus on Fidelity National Info is Strong Buy and the average price target is $90.14, representing a 10.5% upside.
In a report issued on April 10, Robert W. Baird also reiterated a Buy rating on the stock with a $94 price target.
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