Goldman Sachs reported on Wednesday that they have cut their rating of security systems company, Diebold Incorporated(DBD) to a “Sell.”
The firm has downgraded DBD from “Neutral” to “Sell,” and has reduced the company’s price target from $29 to $27. This price target suggests a -14% decline from the stock’s current price of $30.77.
Analysts see DBD’s ATM demand declining as banks scramble to cut costs. Additionally, the company may see losses in both their US and Brazil ATM markets. DBD may also see a pricing risk as they are pressured from larger banks.
Diebold shares were mostly flat during premarket trading Wednesday. The stock has increased 3% in the past year.
The Bottom Line
Shares of Diebold (DBD) have a 3.70% dividend yield, based on last night’s closing stock price of $30.77. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $34 price level.
Diebold Incorporated(DBD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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