Sidoti Starts Coverage on Multimedia Games (MGAM) at Buy, Forecasts Major Pickup Over Next Several Years

Today, June 27, 2011, Sidoti initiated coverage on shares of Multimedia Games (Nasdaq: MGAM) with a Buy rating and $9 price target, which is roughly double what the stock is currently trading at.

The firm forecasts that 2011 industry-wide shipments will bottom this year, but will pick back up do to replacement demand and new casino openings over the next several years.

An analyst from Sidoti comments, "Shares understate MGAM's considerable free cash flow and the stock's likely higher multiple as management diversifies the business mix."

Shares of MGAM are trading up $0.07 or 1.55 percent on the day to $4.60.

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