Goldman Sachs Initiates Coverage On (PAY, NCR, DBD)

Goldman Sachs initiates coverage on Verifone Systems PAY with a Neutral rating and $31 PT. Pay is a strong global footprint, a leading position in key verticals, and services growth leave PAY well positioned to benefit from increased electronic payments use/acceptance, though current full valuation keeps us sidelined. Goldman Sachs has initiated coverage on NCR Corporation NCR with a Neutral rating and $16 PT. Exposure to multiple verticals (financial, retail) leaves NCR less levered to bank IT spending; Goldman thinks it could see further upside as entertainment's prospects come into focus and pension uncertainty abates. Goldman Sachs has initiated coverage on Diebold Incorporated DBD with a Neutral rating and $32 PT. DBD's bank client mix is a near-term headwind given uncertain demand and a less diverse revenue stream, while security business remains a drag. Valuation appears full, despite a solid 3.4% dividend yield. PAY is trading lower at $33.54 NCR is trading lower at $14.32 DBD is trading lower at $32.02