{"id":298483,"date":"2023-11-13T18:43:40","date_gmt":"2023-11-14T00:43:40","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=298483"},"modified":"2023-11-14T21:01:25","modified_gmt":"2023-11-15T03:01:25","slug":"igt-stock-could-be-rebound-candidate-says-stifel-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/","title":{"rendered":"IGT Slump Symptom of Speculation, Not Fundamental Erosion, Says Analyst"},"content":{"rendered":"

Shares of International Game Technology (NYSE: IGT) are off 13.37% over the past month and are 22% to the downside removed from the stock\u2019s 52-week high, exceeding the definition of a bear market. But at least one analyst believes the slump is more the result of conjecture than it is a commentary on fundamentals.<\/p>\n

\"IGT\"
A bank of Wheel of Fortune<\/em> slot machines. Shares of manufacturer IGT could rebound, says an analyst. (Image: TheStreet.com<\/em>)<\/figcaption><\/figure>\n

That\u2019s the take of Stifel analyst Jeffrey Stantial, who, in a new report to clients, rated the lottery provider and slot machine manufacturer a \u201cbuy\u201d with a $35 price target, implying upside of 32% from Monday\u2019s close. While the stock has been slumping, IGT has tailwinds, including a steady slot upgrade cycle,<\/p>\n

Given historical cyclicality & misconstrued operator commentary this earnings season, we see more outsized investor focus on the slot replacement cycle,\u201d wrote Stantial. \u201cManagement cited a robust pipeline through year-end, though acknowledging that longer-term visibility remains limited – especially with North American replacements demand still running solidly (est. mid-teens% in Q2A) above 2019A levels.\u201d<\/p><\/blockquote>\n

Among other slot titles, IGT is the manufacturer of Wheel of Fortune<\/a><\/em> slot machines<\/a>, which are among the most popular slots in casinos across the U.S.<\/p>\n

IGT Lottery Biz Still Attractive<\/h2>\n

Following a recent spate of historically high Mega Millions and Powerball jackpots, IGT management noted to Stantial that there are some signs of \u201cjackpot fatigue.\u201d<\/p>\n

\n

However, that doesn\u2019t dent the overall thesis for IGT\u2019s often-underappreciated lottery unit. IGT\u2019s lottery business, which accounts for 75% of pro-forma earnings<\/a>, is a major driver of earnings before interest, taxes, depreciation, and amortization (EBITDA) and is undervalued relative to competing assets.<\/p>\n<\/div>\n

Still, data indicates domestic lottery sales are soaring this year, and the lottery has historically been one segment of the gaming industry that proves sturdy when consumers dial back discretionary spending.<\/p>\n

\u201cOur checks show U.S. multi-state jackpot sales are trending ~80% higher than 2019A year-to-date,\u201d added Stantial. \u201cWhen assessed in totality, lottery demand remains robust & likely resilient even should the consumer pullback (recall U.S. lottery sales declined less than 1% peak-to-trough during the global financial crisis.)\u201d<\/p>\n

IGT Could Become Cleaner Lottery Play<\/h2>\n

In June, IGT announced it is mulling strategic alternatives<\/a> for its global gaming and PlayDigital units, including potential sales of those units. In September, reports surfaced that Apollo Global Management (NYSE: APO) could make a run at the global gaming unit.<\/p>\n

\n

Should IGT divest those businesses, it would get the company out of the ultra-competitive slot machine space while cleaning up the broader investment thesis, likely bringing the highly profitable lottery unit into focus for investors. Even if a sale of the slot unit isn\u2019t imminent, IGT can thrive in an increasingly competitive landscape, said Stantial.<\/p>\n<\/div>\n

\u201cStill, management sees momentum continuing into 2024, in particular citing 1) robust installation numbers\/pace for Prosperity Link & Mystery of the Lamp, 2) solid ship share of steppers (~40%) driven by DiamondRS, and 3) opportunity to take share in video WAP led by the new Whitney Houston theme,\u201d concluded the analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of International Game Technology (NYSE: IGT) are off 13.37% over the past month and are 22% to the downside removed from the stock\u2019s 52-week high, exceeding the definition of a bear market. But at least one analyst believes the slump is more the result of conjecture than it is a commentary on fundamentals. That\u2019s […]<\/p>\n","protected":false},"author":46,"featured_media":258406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,13699,69293],"tags":[81903,13701,81890],"acf":[],"yoast_head":"\nIGT Stock Could Be Rebound Candidate, Says Stifel Analyst<\/title>\n<meta name=\"description\" content=\"IGT stock could notch significant upside, says Stifel analyst.\" \/>\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\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IGT Stock Could Be Rebound Candidate, Says Stifel Analyst\" \/>\n<meta property=\"og:description\" content=\"IGT stock could notch significant upside, says Stifel analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/\" \/>\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=\"2023-11-14T00:43:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-15T03:01:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/wof.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\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\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/\",\"name\":\"IGT Stock Could Be Rebound Candidate, Says Stifel Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/wof.jpg\",\"datePublished\":\"2023-11-14T00:43:40+00:00\",\"dateModified\":\"2023-11-15T03:01:25+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"IGT stock could notch significant upside, says Stifel analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/igt-stock-could-be-rebound-candidate-says-stifel-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/wof.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/wof.jpg\",\"width\":1200,\"height\":675,\"caption\":\"A bank of Wheel of Fortune slot machines. 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