10 Cheap New Stocks To Buy Right Now

6. NCR Atleos Corp. (NYSE:NATL)

Number of Hedge Fund Holders: 27

Forward P/E ratio as of January 25: 7.7

Market Capitalization: $2.36 billion

NCR Atleos Corp. (NYSE:NATL) is a financial technology company that provides self-service banking solutions, ATM networks, and managed network services. It operates across North America, Europe, and Asia Pacific, and serves several clients including financial institutions, retailers, and businesses.

The company made $1.08 billion in revenue during Q3 2024, due to the strong growth in its ATMaaS business. ATMaaS revenue surged 23% year-over-year to $49 million, fueled by a 46% increase in live customers and expansion into 10 new markets. This growth translated to a 19% increase in gross profit for the ATMaaS segment to $16.1 million. While the company currently prioritizes maximizing revenue per unit, the long-term growth strategy focuses on expanding service offerings to existing customers.

Compass Point initiated coverage on NCR Atleos Corp. (NYSE:NATL) on December 23, 2024, issuing a Buy rating with a price target of $57. This stance is underpinned by a forecast of $418 million in free cash flow by fiscal year 2026, coupled with a projected market capitalization/free cash flow multiple of 10x. The company has a 36% market share in the ATM sector, which positions it well to capitalize on the growing demand for managed services and ATM as a Service (ATMaaS) offerings. Furthermore, the firm anticipates an increase in ARPU from 5.1 in 2024 to 5.9 by 2026 within the self-service banking segment.