VYX Stock Forecast & Price Target

NCR Voyix Corp is positioned for steady growth as it continues to win new clients and convert existing customers to its cloud-based platform, particularly in the Retail and Restaurants segments, demonstrating strong year-over-year trends in Annual Recurring Revenue (ARR) of 5% in the fourth quarter. The company's focus on enhancing operational efficiencies and customer satisfaction is expected to further drive margins and profitability, supported by cost efficiencies planned through fiscal years 2024 and 2025. With management's commitment to executing its platform strategy, the outlook for increased software revenue, improved EBITDA margins, and stronger free cash flow conversion remains promising.

NCR Voyix Corp has experienced significant revenue declines across its segments, with retail revenue falling 15% year-over-year to $461 million and restaurant revenue down 5% year-over-year to $211 million, attributed primarily to hardware declines. The company reported an adjusted EBITDA of $114 million, which, despite being slightly above estimates, reveals persistent margin pressures due to higher selling, general, and administrative costs. Furthermore, potential economic downturns could exacerbate challenges related to new customer acquisition and conversion to a SaaS model, alongside risks associated with dis-synergies following the separation from NATL, which may negatively impact margins and profitability.