Citi Reiterates 'Buy' on International Game Technology (IGT)

July 17, 2008 9:57 AM EDT

Citi reiterates a 'Buy' rating on International Game Technology (NYSE: IGT). Price target $45.

Citi analyst says, "IGT has an attractive business model, characterized by product leadership and dominant market share, in an industry with high competitive barriers to entry. The company generates high margins on product sales and recurring revenue machines, which results in strong free cash flow, after adjusting for research and development and capital expenditures. IGT's business model is self-funding and its balance sheet under-levered, which should allow for continued, and possibly more aggressive, share repurchases over the next several years. Although domestic replacement sales remain in a lull, international sales should be strong in FY'07 and FY'08 (ending September), and server based gaming could be a catalyst for the next replacement cycle beginning in FY'09."

International Game Technology (IGT) is a global company specializing in the design, manufacture and marketing of computerized gaming equipment, network systems, licensing and services.[SM]

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• Citi

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?