J.P. Morgan Comments On DBD Meeting

J.P. Morgan is commenting on its meeting with Diebold, Incorporated DBD. “We met with DBD in NY on March 25,” J.P. Morgan writes. “Outside of EMEA DBD is executing well and experiencing a gradual cyclical recovery in demand; however, defending share in a commodity market and cutting costs are a tough way to eke out earnings growth; we look for technology-led innovation to fuel differentiation and new growth but find it lacking at present. “Management targets overall corporate margins of 10% long term vs. 2010 level of ~7%. The sources of margin growth could be (1) 75 bps from EMEA restructuring; (2) regional bank demand; (3) security business.” Diebold, Incorporated closed Friday at $34.49.