The firm has a $33 price target on shares of the North Canton, OH-based financial self-service and security solutions company.
The upgrade is based on valuation and comes ahead of catalysts.
The 13% decline in the stock over the last month provides a buying opportunity at an attractive multiple, according to JPMorgan. That offsets the near-term and tail-risks associated with the company's acquisition of Wincor Nixdorf.
Wincor Nixdorf is a German company that provides retail banking hardware, software and services.
"By the February 2017 analyst day, noise associated with the acquisition should dissipate and investors should gain a clearer line of sight to the $160 million synergy target, debt deleveraging potential, and earnings power," the firm wrote in an analyst note.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DBD