JP Morgan cut its rating on WMS Industries WMS from Neutral to Underweight and reduced its price target from $21 to $14.
JP Morgan noted, "We view WMS as entering another phase of declining EPS and ROICs (following a period of optimistic guidance and mixed execution) over the next 12 months given (1) competitors' gaming operations product negatively impacting WMS with a combination of limited installed base growth and declining yields, (2) heightened competition and adverse mix (VLTs) driving declining pricing/ASP in product sales (not good for margins), (3) limited new U.S. market/property expansion, (4) accelerating operating expenses related to unproven product (interactive), and (5) our unchanged views of very modest North American replacements."
WMS Industries closed at $18.26 on Monday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in