{"id":273568,"date":"2023-05-15T13:13:39","date_gmt":"2023-05-15T18:13:39","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=273568"},"modified":"2023-05-16T13:04:12","modified_gmt":"2023-05-16T18:04:12","slug":"playags-stock-surges-as-analyst-says-its-undervalued","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/","title":{"rendered":"PlayAGS Stock Soars as Jefferies Analyst Calls it \u2018Severely Undervalued\u2019"},"content":{"rendered":"

PlayAGS (NYSE: AGS) is one of the best-performing gaming stocks today. That’s after Jefferies analyst David Katz highlighted it as a small-cap valuation opportunity.<\/p>\n

\"PlayAGS
PlayAGS slot machines seen in an investor deck. An analyst says the stock is dramatically undervalued. (Image: PlayAGS)<\/figcaption><\/figure>\n

In a note to clients, Katz upgraded the slot machine manufacturer to \u201cbuy\u201d from \u201cneutral,\u201d while boosting his price target on the name to $10 from $7, implying upside of 89% from the May 12 close. That bullish commentary contributed to PlayAGS\u2019s Monday pop, which has the stock higher by 16.79% in midday trading on volume that\u2019s already matched the daily average.<\/p>\n

The basis for the upgrade is that the operations are progressing better than the past three years post the missteps of 2019 and Covid,\u201d<\/strong> wrote Katz. \u201cThe [latest] quarter supports the trend that product momentum has been building over the past several quarters, which should continue to accelerate.\u201d<\/strong><\/p><\/blockquote>\n

PlayAGS struggled last year. But the shares are up 19.80% year to date, and it remains a favored small-cap gaming play among sell-side analysts, many of whom consider the stock undervalued<\/a>. The 52-week high on the name is $8.40. It resides around $6.20 at this writing.<\/p>\n

PlayAGS Stock Upside Catalysts<\/h2>\n

Las Vegas-based PlayAGS recently reported estimate-beating first-quarter results, which were propped up by strength in the company\u2019s electronic gaming machine (EGM) unit.<\/p>\n

Better-than-expected 1Q23 revenue [was] attributed to a broadened global customer base and increased EGM sales, notably in international markets,\u201d<\/strong> noted Katz. \u201cGiven the product traction, we believe the dislocation of valuation from the earnings acceleration presents opportunity.\u201d<\/strong><\/p><\/blockquote>\n

Last month, another analyst observed that PlayAGS started the second quarter on a strong note,<\/a> and that the company has solid two- to three-month visibility in terms of client purchasing trends. Wall Street expects the firm to notch high single-digit sales growth this year.<\/p>\n

Amid the top and bottom-line momentum PlayAGS accrued in the first quarter, Katz believes management can replicate that positivity going forward.<\/p>\n

\u201cOur impression from management is its future strategies support this acceleration. AGS and its peers have reached out-of-favor status. We believe herein lies the opportunity for a severely undervalued small-cap stock,\u201d according to the analyst.<\/p>\n

PlayAGS Has Rising Sales, Declining Leverage<\/h2>\n

PlayAGS offers investors other compelling attributes, including rising sales and earnings before interest, taxes, depreciation, and amortization (EBITDA) and declining leverage<\/a>.<\/p>\n

We expect revenue and Adj. EBITDA to continue growing, [and] leverage to begin decreasing,\u201d<\/strong> Jefferies\u2019 Katz concluded.<\/p><\/blockquote>\n

While not mentioned by the analyst, gaming industry consolidation is picking up<\/a>, and small-cap slot manufacturers with original content that can be leveraged for online casinos could be attractive targets.<\/p>\n

On that note, Inspired Entertainment (NASDAQ: INSE) offered $10 a share for PlayAGS last year. But those talks collapsed, as the target believed its worth more than that. In the wake of that deal, some analysts speculated other buyers would kick the tires on PlayAGS. But no offer was publicly revealed in the subsequent months.<\/p>\n","protected":false},"excerpt":{"rendered":"

PlayAGS (NYSE: AGS) is one of the best-performing gaming stocks today. That’s after Jefferies analyst David Katz highlighted it as a small-cap valuation opportunity. In a note to clients, Katz upgraded the slot machine manufacturer to \u201cbuy\u201d from \u201cneutral,\u201d while boosting his price target on the name to $10 from $7, implying upside of 89% […]<\/p>\n","protected":false},"author":46,"featured_media":248442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,69293],"tags":[81903,81890],"acf":[],"yoast_head":"\nPlayAGS Stock Surges As Analyst Says It's Undervalued<\/title>\n<meta name=\"description\" content=\"PlayAGS stock rallies after Jefferies analyst Katz says it's undervalued in a big way.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PlayAGS Stock Surges As Analyst Says It's Undervalued\" \/>\n<meta property=\"og:description\" content=\"PlayAGS stock rallies after Jefferies analyst Katz says it's undervalued in a big way.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-15T18:13:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-16T18:04:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1433\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/\",\"url\":\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/\",\"name\":\"PlayAGS Stock Surges As Analyst Says It's Undervalued\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg\",\"datePublished\":\"2023-05-15T18:13:39+00:00\",\"dateModified\":\"2023-05-16T18:04:12+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"PlayAGS stock rallies after Jefferies analyst Katz says it's undervalued in a big way.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg\",\"width\":2000,\"height\":1433,\"caption\":\"PlayAGS slot machines seen in an investor deck. An analyst says the stock is dramatically undervalued. (Image: PlayAGS)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"PlayAGS Stock Soars as Jefferies Analyst Calls it \u2018Severely Undervalued\u2019\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"PlayAGS Stock Surges As Analyst Says It's Undervalued","description":"PlayAGS stock rallies after Jefferies analyst Katz says it's undervalued in a big way.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/","og_locale":"en_US","og_type":"article","og_title":"PlayAGS Stock Surges As Analyst Says It's Undervalued","og_description":"PlayAGS stock rallies after Jefferies analyst Katz says it's undervalued in a big way.","og_url":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-05-15T18:13:39+00:00","article_modified_time":"2023-05-16T18:04:12+00:00","og_image":[{"width":2000,"height":1433,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/","url":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/","name":"PlayAGS Stock Surges As Analyst Says It's Undervalued","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg","datePublished":"2023-05-15T18:13:39+00:00","dateModified":"2023-05-16T18:04:12+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"PlayAGS stock rallies after Jefferies analyst Katz says it's undervalued in a big way.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/AGS.jpg","width":2000,"height":1433,"caption":"PlayAGS slot machines seen in an investor deck. An analyst says the stock is dramatically undervalued. (Image: PlayAGS)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/playags-stock-surges-as-analyst-says-its-undervalued\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"PlayAGS Stock Soars as Jefferies Analyst Calls it \u2018Severely Undervalued\u2019"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/273568"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=273568"}],"version-history":[{"count":3,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/273568\/revisions"}],"predecessor-version":[{"id":273640,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/273568\/revisions\/273640"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/248442"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=273568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=273568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=273568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}