UPDATE: Deutsche Bank Initiates Shuffle Master with Buy, $18 PT on Pullback Opportunity, Growing Revenues

Deutsche Bank initiates its coverage on Shuffle Master SHFL with a Buy rating and a price target of $18. Deutsche Bank notes, "Given the recent pullback in shares, a growing base of recurring revenue, the rollout of the MD3 shuffler, a solid balance sheet and strong free cash flow, EGM momentum, and a stable and growing PTG segment, we believe the risk/reward in SHFL shares is favorably skewed, at present. …We expect SHFL to benefit from 1) a stable and growing base of recurring revenue, 2) the MD3 shuffler rollout that appears to be accelerating, 3) a solid balance sheet and strong free cash flow that allows for potential shareholder friendly actions, 4) continued momentum in the EGM segment, 5) slow and steady growth in the PTG segment, and 6) SHFL's continued entrance into the online gaming space." SHFL closed at $13.18 on Wednesday.