Market Overview

Telsey Advisory: International Game Technology Is A Potentially Great Value Play

Telsey Advisory: International Game Technology Is A Potentially Great Value Play

  • In a report issued Friday, Telsey Advisory Group analysts David Katz and Brian Davis upgraded their rating on International Game Technology Ordinary Shares (NYSE: IGT) from Market Perform to Outperform.
  • In addition, they boosted their price target for the stock from $22.00 to $23.00.
  • The shares are slightly down on Friday trading.
  • According to a recent Telsey Advisory Group research note, their upgrade on International Game Technology was driven by the firm’s comfort with the story and its prospects for free-cash-flow, reinforced by several elements.

    Reasons For Upgrade

    Primarily, after meeting with management and reviewing their model, the analysts at Telsey are more confident on “the prospective strong cash flow generation for 2016 and beyond.”

    Secondarily, the firm’s channel checks still suggest that International Game Technology “is providing a foundation for a productive turnaround.” The experts noted that, while there still remains risk associated with the Italian Lotto contract RFP, evidence suggests that a positive outcome is more likely than a negative one.

    Related Link: Macau's Losing Streak Extends To 15 Months

    Overall, Katz and Davis think that, “if management can maintain its stable lottery business and stabilize the U.S. slot business, the shares are a compelling cash flow and value play.”

    'Compelling Cash Flow And Value Play'

    The report then delves into some of the issues mentioned above:

    • The most prominent attribute of the combined companies (IGT and GTECH S.p.A.) is cash-flow generation.
    • Regarding the turnaround of the company’s slot business in North America, the experts think “the foundation is being formed and should progress over the next 18-24 months.”
    • Management “has executed its re-entry into the US institutional market thoughtfully and credibly thus far,” understanding “the importance transparency, meeting expectations in the near term and allocating capital thoughtfully by U.S. capital markets standards,” the analysts assured.

    Disclosure: Javier Hasse holds no stakes in any of the securities mentioned above.

    Image Credit: Public Domain

    Latest Ratings for IGT

    Nov 2020Credit SuisseUpgradesUnderperformNeutral
    Aug 2020Deutsche BankMaintainsBuy
    Jul 2020SunTrust Robinson HumphreyMaintainsHold

    View More Analyst Ratings for IGT
    View the Latest Analyst Ratings


    Related Articles (IGT)

    View Comments and Join the Discussion!

    Posted-In: Analyst Color Long Ideas Upgrades Price Target Topics Top Stories Analyst Ratings Trading Ideas Best of Benzinga

    Latest Ratings

    HYMCBMO CapitalInitiates Coverage On
    DEMorgan StanleyMaintains335.0
    SBNYRaymond JamesMaintains138.0
    CORTHC Wainwright & Co.Maintains32.0
    View the Latest Analytics Ratings
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Premarket Activity
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Fintech Focus
    A daily collection of all things fintech, interesting developments and market updates.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at