Susquehanna Upgrades WMS Industries (WMS) to Positive

August 6, 2008 9:38 AM EDT

Susquehanna upgrades WMS Industries (NYSE: WMS) from Neutral to Positive with a $36 price target. The upgrade comes on the heels of a solid fiscal 4Q08 earnings report and encouraging FY09 outlook.

The firm said, "In the quarter, WMS beat our EPS estimate by $0.02 and the Street by a penny. 4QFY08 results were solid, as revenue came in more than $5 mln above prior guidance. The top lines for both machine sales and participation revenue beat our estimates. The trends in gaming ops revenue was particularly encouraging, as WMS's new and innovative game themes drove strong play levels. This was all the more impressive considering that the weak economy led to anemic gaming revenue trends throughout the country during the quarter. WMS continues to make clear market share gains and we expect these trends to continue, the challenging replacement cycle notwithstanding."

WMS Industries, Inc. engages in the design, manufacture, and distribution of gaming machines and video lottery terminals (VLTs) for customers in gaming jurisdictions worldwide.

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• Susquehanna International Group of Companies

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