Stifel Nicolaus Reiterates Buy, Raises PT to $15 on Shuffle Master

Stifel Nicolaus maintains its Buy rating on Shuffle Master (NASDAQ: SHFL) and raises its price target to $15 from $14 on top and bottom line results.

Stifel Nicolaus says, "Reported GAAP EPS of $0.18 versus $0.10 last year. Results were $0.01 above consensus and in line with our estimate. Revenues of $66M (+12%, +8% constant $) came in well ahead of our $60M estimate, paced by record quarterly EGM revenue of $23M. Total recurring revenue increased 12% y/y and 3% sequentially reflecting management's continued commitment to returning the company to a lease-based revenue model. Management repaid ~$22M on its $200M credit facility in the quarter, resulting in net debt of ~$17M (-70% y/y)."

SHFL closed at $10.72 per share on Tuesday.