Global Cash Access (GCA) Falls on Contract Loss, But Analyst Says Don't Fret

Global Cash Access (NYSE: GCA) is notably weaker Wednesday, falling about 5 percent at last check. Sterne Agee analyst David Bain believes this is due to an Isle of Capri cash access contract loss to Global Payments Inc. (NYSE: GPN).

"Both GCA and GPN are at the G2E Gaming Show in Las Vegas, where the channel check emanated," Bain notes. "GCA was similarly weak when GPN reported it had won a cash access contract with Station Casinos several weeks ago."

Bain believes that Global Cash Access has know about the Station and Isle losses up to 6 months ago and are thus included in its guidance. In addition, with the company stating there were are "no top ten" renewals this year, this suggests Station and Isle are not top ten customers. Also, the Isle contract was not fully GCA's when the loss occurred, he said.

Bain is maintaining his Buy and price target of $13.00.

For an analyst ratings summary and ratings history on Global Cash Access click here. For more ratings news on Global Cash Access click here.

Shares of Global Cash Access are down 4.7 percent.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Freedom Broker Upgrades John B. Sanfilippo & Son, Inc. (JBSS) to Buy
• Deutsche Bank Starts Ardagh Metal Packaging S.A. (AMBP) at Hold
• SentinelOne Inc (S) PT Raised to $26 at Cantor Fitzgerald Following Strong Q2 Checks