By : Erik Gruenwedel | Posted: 11 Dec 2009
Despite projected flat growth in its ATM and retail businesses in 2010, NCR Corp. is expected to generate 5% revenue growth due largely to its rollout of Blockbuster Express DVD rental kiosks, according to J.P. Morgan analyst Paul Coster.
Coster, who upgraded Duluth, Ga.-based NCR’s stock to “overweight” from “neutral,” believes the company can generate $250 to $300 million in kiosk revenue by 2011 following rollout of 10,000 Blockbuster Express kiosks.
NCR Dec. 10 announced it had acquired DVDPlay, including 1,300 kiosks, which will be branded into Express units by next year.
“Based on our first-cut forecasts for this entertainment segment, we believe the business can be cash flow positive in the first quarter of 2011,” Coster wrote in a note.
The upgrade sent NCR shares up 93 cents to close Dec. 11 at $10.59 per share.