Bank of America Worried About International Game Technology Tech Transformation

According to a research report published today, Bank of America is concerned with the overall gaming tech industry, and therefore reinstates its Underperform rating and $14 PT on International Game Technology IGT. Bank of America said in the report, “IGT is the most susceptible to key industry challenges namely 1) a slow slot replacement cycle, 2) competition for new products, 3) low returns on incremental R&D spending, and 4) a low ROIC history. We think the “convergence” of online and social gaming remains in its infancy and could be a technology transformation that limits returns of capital to shareholders, and ultimately the prospects and interest for value-oriented investors.” International Game Technology closed yesterday at $15.26.