Diebold Nixdorf gained more than 3% after Barron’s said over the weekend shares could rise 25% to 40% over the next two years on expectations its merger will start to show bigger profits. Last year, Diebold bought Wincor Nixdorf for 1.7 billion euros ($1.9 billion) to create the world’s biggest provider of automated teller machines (ATMs).
The company is expected to increase its revenue 2% 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, the story noted. Possible U.S. retail growth from sales of self-checkout machines, a strength of Wincor Nixdorf in Europe, would also boost Diebold’s stock, according to Barron’s.
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