UPDATE: Stifel Downgrades Scientific Games (SGMS) to Hold
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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."
Shares of Scientific Games closed at $82.60 yesterday.
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