LONDON - NCR (NYSE:VYX) Atleos Corporation (NYSE: NATL), known for providing self-service financial solutions, has begun rolling out its new multi-bank deposit ATMs across the UK. The company's move aims to address the need for convenient cash deposit options, especially in areas affected by local bank branch closures.
The deployment kicked off with an installation at a Co-op Food store in Ormskirk, followed by additional ATMs set up in Dover (NYSE:DOV), Heathfield, and Swanage. Over the next few weeks, Atleos plans to expand this service to other locations, including Bourne, Cardigan, Chipping Norton, Finchley, Kendal, Oxted, Shanklin, and Whitehaven.
These ATMs are connected to LINK, the UK's extensive ATM network, ensuring widespread accessibility to cash deposit services. This initiative is particularly significant for cash-reliant consumers and comes as a response to the ongoing reduction of physical bank branches throughout the country.
Local MP Ashley Dalton applauded the installation of the new cash deposit machine in Ormskirk, highlighting the community's reliance on cash for supporting local businesses. The Co-op has also expressed its commitment to providing services that are valuable to the community, emphasizing the importance of free access to cash through their stores.
Diego Navarrete, executive vice president of Global Sales for Atleos, emphasized the importance of deposit-taking ATMs in maintaining access to cash services across the UK. With the banking industry's shift towards fewer branches, Atleos anticipates that banks will increasingly rely on these ATMs to provide essential services to their customers.
Atleos, headquartered in Atlanta, Georgia, is recognized for its extensive ATM expertise and the operation of the largest independently-owned ATM network. The company's efforts are focused on enhancing operational efficiency for financial institutions, increasing foot traffic for retailers, and facilitating digital-first financial experiences for consumers.
This expansion of deposit-taking ATMs in the UK is part of Atleos's commitment to ensuring continued access to cash services for all consumers. The information is based on a press release statement from NCR Atleos Corporation.
In other recent news, NCR Atleos Corp. has been the subject of distinct analyses from two major financial firms. DA Davidson raised the price target for NCR Atleos to $48.00 from the previous $30.00, maintaining a Buy rating on the stock. This adjustment was influenced by the company's first-quarter results for 2024, which led to a revised earnings model by the firm. Despite minor reductions to the revenue outlook, the adjusted EBITDA expectations for 2024 remained unchanged, with a slight increase anticipated for 2025.
On the other hand, Goldman Sachs (NYSE:GS) initiated coverage on NCR Atleos with a Neutral rating and a 12-month price target of $23.00. Goldman Sachs foresees potential near-term revenue headwinds in hardware due to the company's transition to ATM-as-a-Service (ATMaaS), which currently represents only 4% of the company's total revenue.
These are recent developments that reflect the evolving business dynamics of NCR Atleos. Both firms underscore the company's transition to ATMaaS, a strategic shift aimed at expanding its market share and increasing recurring revenue streams.
InvestingPro Insights
As NCR Atleos Corporation (NYSE: NATL) extends its ATM services across the UK to fill the gap left by bank branch closures, the company's financial performance and market position become increasingly important to investors. According to InvestingPro data, Atleos currently holds a market capitalization of $1.93 billion. Despite a challenging environment, the company's revenue has shown resilience, with a growth of 2.58% over the last twelve months as of Q1 2024, and a more pronounced quarterly revenue growth of 6.49% in Q1 2024.
InvestingPro Tips indicate that while Atleos has faced profitability challenges, with negative net income over the last twelve months, analysts predict that the company will turn profitable this year. This forecast aligns with the company's strategic initiatives, such as the deployment of multi-bank deposit ATMs, which may drive operational efficiency and customer satisfaction. Moreover, Atleos has experienced a strong return over the last month and three months, with price total returns of 24.67% and 34.03% respectively, reflecting positive market sentiment.
Investors should note that Atleos trades at a high Price / Book multiple of 6.82, which may suggest a premium valuation compared to its tangible assets. Additionally, while the company does not pay a dividend, its recent performance and the strategic expansion of its ATM network could offer other forms of shareholder value. For those interested in a deeper analysis, there are several additional InvestingPro Tips available at https://www.investing.com/pro/NATL, which can provide further insight into Atleos's financial health and market potential. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering even more valuable insights for informed investment decisions.
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