UPDATE: Stifel Nicolaus Cuts PT to $19 on SHFL entertainment on Expense Concerns
Stifel Nicolaus reiterated its Buy rating on SHFL entertainment (NASDAQ: SHFL) but reduced its price target from $21 to $19.
Stifel Nicolaus noted, "Although adjusted F4Q12 EPS fell in line with our $0.20 consensus-matching estimate, we exit the quarter with somewhat mixed emotions. While we continue to be attracted to the inherent security of SHFL's recurring revenue story (~43% of F4Q12 revenue) and believe management has established a compelling FY13 revenue growth target range (+12%-19% y/y), we question whether investors will openly embrace the company's continued commitment to investing in its online platform or its decision to officially enter the U.S. slot market."
SHFL entertainment closed at $13.29 on Monday.
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