NCR's share price rose 10% (from opening price) today after market speculation that the company has attracted buyout interest from multiple parties. Details have been scant on this news, and there has been no publicly announced offer from any of the rumored parties. We see this as a positive development for shareholders, as a potential bidding war could drive an even larger premium to its share price. Management has been exploring several strategic alternatives over the last few quarters, including a sale of the company, updating investors at its Q1 2022 earnings call that it was making progress in its review, but has not made any decision yet. However, we point out that NCR has been an acquisition target from PE firms for many years, but a buyout has yet to materialize, likely due to financing. NCR has a total enterprise value of $10.2B. With little details on this development at this moment, we maintain a 12-month target price of $34 for NCR.
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