Goldman Sachs maintains its Sell rating on Scientific Games Corp SGMS after its weak first-quarter results and continued challenges in its gaming operations.
Gaming operations were hurt as WAP/premium installed base dropped 5 percent, while unit sales benefited from stronger ASPs and systems were down 11 percent.
"We remain wary of structural challenges facing the industry, and SGMS is still the most levered name in our coverage at 6.8X 2017E net debt/EBITDA," analyst Steven Kent wrote in a note.
Kent also cut his 2016/2017/2018 adjusted EBITDA estimate to $1.08 billion/$1.15 billion/$1.17 billion from $1.12 billion/$1.17 billion/$1.20 billion, respectively.
However, Kent raised the price target on the stock to $5.70 from $5.
Shares of Scientific Games closed Wednesday's regular trading session at $9.11.
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