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UPDATE: Deutsche Bank Downgrades Scientific Games to Sell on Business Model Challenges

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Deutsche Bank downgraded Scientific Games (NASDAQ: SGMS) from Hold to Sell and lowered the price target from $7.00 to $6.00.

Deutsche Bank noted, "In short, we believe SGMS's business model remains challenged given; 1) bidding on lottery privatizations, thought to be the next leg of growth for SGMS, have become more competitive, thereby elevating the potential for lower returns, 2) structural changes to online lotteries have been slow to materialize and have failed to move the needle from an EPS perspective, 3) the core business has become more competitive and faces structural challenges, and 4) the elevated leverage and limited FCF restrain the valuation multiple."

Scientific Games closed at $9.49 on Monday.

Latest Ratings for SGMS

DateFirmActionFromTo
Feb 2016Maxim GroupMaintainsOutperform
Jan 2016Bank of AmericaDowngradesNeutralUnderperform
Nov 2015Deutsche BankMaintainsHold

View More Analyst Ratings for SGMS
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Downgrades Analyst Ratings

 

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