Shuffle Master Posts Another Solid Quarter

Shuffle Master Inc. (NASDAQ: SHFL) posted its Q3 earnings yesterday and boosted revenue 14% YoY while increasing earnings to $0.13/share. The upside was driven by higher than expected Rapid placements within ETS unit and slightly better margins. Though management did not give formal guidance but did sound optimistic according to Deutsche Bank.

Risks seen are uneven quarters with no company guidance, competition w/slot manufacturers for casino cap-ex, and a newer management team.

Deutsche Bank has lifted its price target to $12 and has a Buy rating on SHFL.

SHFL closed Wednesday at $8.64