UPDATE - Nomura Securities Initiates Coverage on WMS Industries (WMS) with a Neutral
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Price: $143.73 +0.91%
Rating Summary:
14 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Nomura Securities initiates coverage on WMS Industries (NYSE: WMS) with a Neutral rating and $20 PT.
Analyst, Harry Curtis, said, "Recent results owing to lack of compelling, innovative games should continue in the December quarter. The reason that we do not initiate with a Reduce is our faith in WMS’s pipeline of new games. Our key assumptions: (1) WMS’s shipped share slips from 25%- plus to ~20%; (2) pricing declines ~1% in FY12; (3) most free cash is used to refresh the legacy base; (4) replacement sales remain sluggish; (5) new casino openings boost FY12 new unit sales but decline with fewer new openings in FY13; (6) participation yield gradually increases with new product launches; and (7) EPS growth stagnates at the $1.50–1.60 range through FY13. Our estimates are below the Street consensus, given our outlook for continued competitive pressure. What could turn us more negative is if WMS’s new games fail to improve either shipped share or participation game yield."
Analyst, Harry Curtis, said, "Recent results owing to lack of compelling, innovative games should continue in the December quarter. The reason that we do not initiate with a Reduce is our faith in WMS’s pipeline of new games. Our key assumptions: (1) WMS’s shipped share slips from 25%- plus to ~20%; (2) pricing declines ~1% in FY12; (3) most free cash is used to refresh the legacy base; (4) replacement sales remain sluggish; (5) new casino openings boost FY12 new unit sales but decline with fewer new openings in FY13; (6) participation yield gradually increases with new product launches; and (7) EPS growth stagnates at the $1.50–1.60 range through FY13. Our estimates are below the Street consensus, given our outlook for continued competitive pressure. What could turn us more negative is if WMS’s new games fail to improve either shipped share or participation game yield."
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