Please ensure Javascript is enabled for purposes of website accessibility

Why Diebold Nixdorf Stock Soared 13% This Morning

By Chris Neiger - Jan 21, 2021 at 12:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A positive analyst note sent the stock rising.

What happened 

Shares of Diebold Nixdorf Inc. (DBD 6.16%), a manufacturer of automated self-service transaction systems and the software they run on, jumped today after the company received an analyst's upgrade and a higher price target. 

The tech stock was up by as much as 21.6% this morning and had gained 13.7% as of 11:57 a.m. EST. 

So what 

J.P. Morgan analyst Paul Chung upgraded Diebold Nixdorf to overweight from the previous neutral rating and raised his price target for the stock from $10 to $16.  

Blocks with arrows stacked on top of each other.

Image source: Getty Images.

Chung told investors that Diebold is a "deep value stock" as the company improves its earnings and says that Diebold should benefit as demand for self-checkout solutions continues. Additionally, Chung says with more stimulus payments likely on the way for Americans, Diebold's business could benefit.

Investors clearly agreed with Chung's assessment and sent the company's stock skyrocketing. With today's share price jump, Diebold's stock is up 13% over the past 12 months.  

Now what 

Diebold's stock took a beating in 2020, despite the growth of many other tech stocks, and was essentially at break-even at the beginning of this year. While today's upgrade is spurring positive sentiment for the company, investors should make sure they look at the long-term prospects and hurdles for the company before investing. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Diebold Nixdorf, Incorporated Stock Quote
Diebold Nixdorf, Incorporated
$2.93 (6.16%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.