UPDATE - Nomura Securities Initiates Coverage on International Gaming Technology (IGT) with a Neutral
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Price: $16.29 --0%
Rating Summary:
12 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Nomura Securities initiates coverage on International Gaming Technology (NYSE: IGT) with a Neutral rating and $20 PT.
Analyst, Harry Curtis, said, "Issues that limit our enthusiasm are market specific: (1) Competition is stiff in a slow-growth market. (2) Pricing power is limited. (3) Incremental new/expansion casino opportunities are unpredictable. (4) Replacement demand remains weak. IGT is not without its strengths, in our view: a stable ~40% floor share and increasing shipped share; improving daily win in its Gaming Operations; a strong balance sheet; and a free cash yield of ~9%. The bulls argue that IGT is cheap, as it is trading at 16x forward EPS vs its historical 10-year average of ~22x. However, we think the stock’s forward valuation deserves to be much lower than its historical average, 15x is reasonable."
Analyst, Harry Curtis, said, "Issues that limit our enthusiasm are market specific: (1) Competition is stiff in a slow-growth market. (2) Pricing power is limited. (3) Incremental new/expansion casino opportunities are unpredictable. (4) Replacement demand remains weak. IGT is not without its strengths, in our view: a stable ~40% floor share and increasing shipped share; improving daily win in its Gaming Operations; a strong balance sheet; and a free cash yield of ~9%. The bulls argue that IGT is cheap, as it is trading at 16x forward EPS vs its historical 10-year average of ~22x. However, we think the stock’s forward valuation deserves to be much lower than its historical average, 15x is reasonable."
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