The US IPO market experienced a rebound in 2024, with proceeds and deal volume increasing compared to the previous two years. However, activity remained below historical levels due to economic uncertainty. Despite this, there’s optimism about a resurgence in IPO activity in 2025, mainly driven by potential interest rate cuts, pent-up investor demand, and a large pipeline of well-prepared companies.
NCR Atleos Corporation (NYSE:NATL) is one such company that has taken advantage of the market trend. The financial technology firm provides self-service banking solutions, ATM networks, and managed network services across North America, Europe, and Asia Pacific. As of January 25, NATL’s forward P/E ratio stands at 7.7, making it an attractive option for investors.
NATL has reported strong growth in its ATMaaS business, with revenue surging 23% year-over-year to $49 million. This growth is driven by a 46% increase in live customers and expansion into 10 new markets. The company’s long-term growth strategy focuses on expanding service offerings to existing customers, positioning it well for the growing demand for managed services and ATM as a Service (ATMaaS) offerings.
Compass Point initiated coverage on NATL on December 23, 2024, issuing a Buy rating with a price target of $57. The firm anticipates an increase in ARPU from 5.1 in 2024 to 5.9 by 2026 within the self-service banking segment. With a market share of 36% in the ATM sector, NATL is well-positioned to capitalize on the growing demand for its services.
As part of our research into cheap new stocks to buy right now, we’ve selected NATL as one of the top options. While it may not be the most promising AI stock, NATL offers a compelling value proposition for investors looking for a growth-oriented financial technology company. With its strong revenue growth and expanding service offerings, NATL is worth considering for those seeking to capitalize on the growing demand for managed services and ATMaaS offerings.
Note: Disclosure – None. This article is originally published at Insider Monkey.
Source: https://finance.yahoo.com/news/ncr-atleos-natl-cheap-stock-122436004.html