Share prices of Diebold Nixdorf may increase by more than 25 percent in the next two years as the merger of two cash dispensing machines makers is expected to produce heftier profits, Barron's said.
Last year, Diebold bought its German rival Wincor Nixdorf for 1.7 billion euros ($1.9 billion), creating the world's biggest provider of automated teller machines (ATMs).
The company is expected to increase its revenue 2 percent annually through 2020 and raise its earnings per share to $3 or more via $200 million in cost reductions and other benefits from the merger, Barron's columnist Vito Racanelli wrote on Saturday.
Diebold's business is seen strained on the notion of declining use of cash in some countries.
"Cash is growing slowly as a medium of exchange in developed countries, although faster in emerging markets," Racanelli said.
Still, demand for ATMs should grow with interest rates and bank profits. Possible U.S. retail growth from sales of self-checkout machines, a strength of Wincor Nixdorf in Europe, would also enhance Diebold's stock, according to Racanelli.
Diebold's share price could rise 25 percent to 40 percent in the next couple of years to $33 to $38, compared with Friday's close of $26.80, he said.
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