NCR Atleos (NATL): Evaluating Valuation After New AI Partnership With Kuwait Finance House

NCR Atleos (NYSE:NATL) has teamed up with Kuwait Finance House to roll out AI-powered video avatars at in-branch kiosks. The goal is to make banking more interactive and personalized for customers in Kuwait.

See our latest analysis for NCR Atleos.

NCR Atleos’s splashy AI partnership comes as the stock is quietly regaining momentum, with an 11.01% year-to-date share price return and an impressive 28.90% total shareholder return over the past year. Recent bylaw changes and the upcoming earnings release add to the sense that the company’s tech-forward strategy is fueling optimism about both growth and resilience.

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With shares still trading below analyst price targets and continued innovation on display, investors are left wondering whether NCR Atleos remains undervalued or if the market is already factoring in every bit of future upside.

Most Popular Narrative: 15% Undervalued

Compared to the latest closing price of $37.82, the most widely followed narrative estimates fair value at $44.67. This sets the stage for a bold claim about NCR Atleos’s future.

High recurring revenue mix (over 70% in Q2), significant productivity gains through AI-driven service optimization, and a rapidly scaling backlog are driving strong margin expansion and robust free cash flow. These factors underpin announced share buybacks and sustained EPS growth, suggesting current valuation does not reflect enhanced long-term earnings power.

Read the complete narrative.

Curious what financial assumptions led to this bullish price target? The narrative’s foundation lies in durable margins, accelerating digital growth, and a shifting revenue mix. Want the specifics behind this projection? Unlock the full narrative for the numbers making this thesis so compelling.

Result: Fair Value of $44.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensified fintech competition or a sharper shift to digital banking could still undermine NCR Atleos's recurring revenue and long-term growth trajectory.

Find out about the key risks to this NCR Atleos narrative.

Another View: Price Ratios Highlight Caution

Looking beyond analyst price targets, NCR Atleos trades at a price-to-earnings ratio of 21.1x. This is higher than both the industry average of 14.8x and the peer average of 10x. Even compared to its estimated fair ratio of 19.3x, shares appear relatively expensive, which raises concerns about valuation risk if the market reverts. Does the current optimism fully stack up?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own NCR Atleos Narrative

If you feel inspired to dig deeper or follow a different path, you can assemble your own NCR Atleos narrative in just a few minutes. Do it your way

A great starting point for your NCR Atleos research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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