Wells Fargo Maintains Market Perform Rating and $25-26 VR on International Game Tech (IGT) Following Social Gaming Divestiture for $825M; 'Win for IGT'

Wells Fargo maintains Market Perform rating and $25-26 valuation range on International Game Tech (NYSE: IGT) as the company announced it was selling its social gaming business (Double Down) to DoubleU Games -- a public, South Korean based social gaming operator for $825 million.

Analyst Cameron McKnight notes management sold Double Down Games at a 12-14x EBITDA multiple when licensing and R&D are factored in, ahead of 7x EBITDA multiple the company trades at now. Most important, by divesting Double Down games, the company is no longer competing with its customers, allowing management to focus on its B2B model.

For an analyst ratings summary and ratings history on International Game Tech click here. For more ratings news on International Game Tech click here.

Shares of International Game Tech closed at $21.29 yesterday.

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