UPDATE: Stifel Downgrades Scientific Games (SGMS) to Hold

November 3, 2021 4:23 AM EDT
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Price: $58.07 --0%

Rating Summary:
    8 Buy, 7 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 13 | New: 20
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(Updated - November 3, 2021 5:37 AM EDT)

Stifel analyst Jeffrey Stantial downgraded Scientific Games (NASDAQ: SGMS) from Buy to Hold with a price target of $90.00 (from $84.00).

The analyst comments "We are downgrading SGMS from Buy to Hold and moving our target price to $90 from $84. We believe execution from management and the BoD since Perelman's exit has been superb, transforming SGMS from a highly levered and overly diversified company to a significantly delevered content-led gaming company, with clearly defined synergies across the portfolio of RemainCo assets. However, with the stock up 4-fold since the Perelman sale (3-fold vs. pre-COVID), we think the asset-sale driven value creation has largely played out, with investor focus now shifting to the long-term thesis where still material execution risk offsets our enthusiasm for this leadership team and their well-illustrated RemainCo growth strategy. As such, despite our positive view on the long-term trajectory of the company, we feel more comfortable on the sidelines for the time being as we wait for proof points of impact from the new strategy/team to manifest in results."

For an analyst ratings summary and ratings history on Scientific Games click here. For more ratings news on Scientific Games click here.

Shares of Scientific Games closed at $82.60 yesterday.

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