NCR shares have been hit hard in recent years
NCR Corporation (NYSE:NCR) shares have been stuck in a two-year downtrend, falling from an early 2017 peak near $50 to Monday's close of $22.71. In more recent months, the 80- and 120-day moving averages have capped upside advances, and the stock just yesterday hit a nearly two-year low of $22.58.
RBC isn't worried, however. The brokerage firm already had an "outperform" rating on NCR, and just raised its opinion to make the stock its top pick, lifting its price target to $40 from $36 in the process. The analyst in coverage cited the equity's attractive risk-reward setup, and management's new focus on recurring revenue.
There are other bullish analysts outside RBC, too, with half those in coverage handing out "strong buy" ratings. Moreover, the average 12-month price target of $34.93 represents an almost 54% premium to current levels. Short interest is high, however, representing almost 8% of the total float. Going by average daily volumes, it'd take these bears 12 sessions to cover.