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Wells Fargo Resumes Coverage on Bally Technologies (BYI) at Market Perform; Fairly Valued, With Some Risk To FY2013 Estimates

December 13, 2011 7:01 AM EST Send to a Friend
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Price: $61.07 --0%

Rating Summary:
    7 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 12
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Wells Fargo resumes coverage on Bally Technologies (NYSE: BYI) with a Market Perform. PT range $30-$40.

Wells analyst says, "BYI currently trades at 40.8x FY2013E free cash flow (FCF), 13.9x FY2013E EPS, and 6.9x FY2013E EV/EBITDA, which we believe is fair at this point. While BYI's product is improving and its systems business offers diversification, we believe this is largely reflected in the 15% appreciation in the stock price since BYI increased its guidance last quarter, versus the S&P 500, up 0.2%. While our FY2012 EPS estimate of $2.33 is only 2.2% below the consensus, our FY2013 EPS estimate of $2.75 is 6% below, as we see risk from the anticipated contribution from Italy and the potential for a longer ramp-up in systems revenue than the Street is modeling. In our view, BYI's limited FCF generation reflects a narrower earnings base than IGT."

For an analyst ratings summary and ratings history on Bally Technologies click here. For more ratings news on Bally Technologies click here.

Shares of Bally Technologies closed at $38.17 yesterday.




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