Why NCR Voyix Stock Soared This Week

Fintech retail company NCR Voyix (VYX -0.35%) it was the subject of a new positive analyst note earlier in the week, and this set the tone for subsequent trading days. As of Friday morning, before the market opened, the company’s share price was up more than 15 percent year-to-date, according to data compiled by S&P Global Market Intelligence.

The stock has upside potential of nearly 50%, the analyst says

The NCR Voyix bull was Oppenheimer forecaster Ian Zaffino. On Monday evening, Zaffino issued a new research report on the company, reiterating its outperform (buy, in other words) recommendation and price target of $19 per share. At the stock’s most recent closing price, this suggests NCR Voyix stock has a 48% upside potential.

Zaffino’s move comes after his company hosted NCR Voyix’s David Wilkinson at a tech industry conference. During the event, NCR Voyix’s top brass discussed at length the sale of the company’s digital banking unit. Announced earlier this month, the deal is for NCR Voyix to sell the unit to a firm called Veritas Capital for a base price of $2.45 billion.

In a new research note, the analyst wrote that the proceeds from the sale will significantly improve the seller’s balance sheet. It will also, in his words, become “a pure leader in retail and restaurants.”

Possibly more where that came from

In announcing the deal with Veritas, NCR Voyix said it was part of its efforts to slim down into a more streamlined and focused company. If the transaction goes through smoothly, NCR Voyix will be eligible to earn up to an additional $100 million going forward. The transaction is expected to close by the end of this year.