Jefferies Daily Gaming Report (BYI, KNM, WMS)
November 17, 2010 11:24 AM
Jefferies & Company is out with its Daily Gaming Digest this morning, where it takes a look at trends in the Gaming Industry and what it means for stocks in its coverage space.
The analysts cited their visit to the 2010 Global Gaming Expo, which kicked off with booth tours and various management meetings. The analysts noted their meetings with casino operators do not reflect meaningful change in the posture as it relates to replacing slot machines on their floors.
They said, “While there are specific companies that have continued to actively replace their slot product over the past couple of years with the view that it is a critical revenue driver for their regional business and is not discretionary. Meanwhile, other casino companies indicate to us that they intend to remain conservative.
The need to improve efficiencies in operating and marketing costs is evident among casino companies and we believe technology is the key driver of these efforts.”
The Jefferies analysts said that WMS Gaming Inc. (NYSE: WMS), Konami Gaming, Inc. (NYSE: KNM), and Bally Technologies, Inc. (NYSE: BYI) are the main companies likely to take share in the space.
