Shares of Diebold Nixdorf Inc. (NYSE:DBD), 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.
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.
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.
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.