UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on SHFL Entertainment Following Management Meetings

In a report published Wednesday, Deutsche Bank analyst Kelly Knybel reiterated her Buy rating on SHFL Entertainment SHFL, and raised her price target from $17.00 to $20.00. In the report, Knybel noted, “Following our meetings, our thesis is unchanged as we continue to believe a growing base of recurring revenue, the rollout of the MD3 and DeckMate 2 shufflers, entrance into the U.S. slot market, a solid balance sheet and strong free cash flow, and a stable and growing PTG segment, outweigh concerns surrounding the significant reinvestment in the ETS segment that could fail to bear fruit, limited visibility into earnings, and continued sales/lease mix and margin volatility. Accordingly, we are raising our F2014 estimates and upping our price target to $20 from $17.” SHFL Entertainment closed on Tuesday at $15.67.