Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

International Game Tech shares target cut by Truist Securities

EditorEmilio Ghigini
Published 05/15/2024, 07:46 PM
IGT
-

On Wednesday, Truist Securities adjusted its outlook on International Game Technology (NYSE:IGT) shares, reducing the price target from $26.00 to $23.00 while maintaining a Hold rating on the stock.

The change reflects a more conservative stance on the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year 2024, which the firm decreased by 1% due to cautious margin assumptions.

The firm's decision comes after IGT reported a high single-digit EBITDA beat, driven by a strong performance in the Lottery segment that helped to counterbalance a miss in the Gaming & Digital (G&D) division.

This was attributed to a shift in the timing of separation costs. Management responded to the earnings beat by raising its full-year outlook to the higher end of its previous guidance.

Further insights were provided on the ongoing developments regarding the renewal of the Italy lottery concession. Additionally, the anticipated combination between IGT and Everi Holdings Inc. (NYSE:NYSE:EVRI), which is expected to be completed between late 2024 and early 2025, was confirmed to be progressing as planned.

Despite the positive first-quarter results, Truist Securities noted that some investors might be concerned about the potential loss of diversification following the separation of IGT's businesses.

However, the firm also acknowledged that there could be long-term benefits from the deal. In the near term, the analyst suggested that the stock might experience limited price movement.

The revision in IGT's price target to $23 reflects these various factors as the company navigates through its strategic developments and market conditions.

InvestingPro Insights

As International Game Technology (IGT) navigates strategic changes and market conditions, current data from InvestingPro provides additional context for investors. With a market capitalization of $4.13 billion and a price-to-earnings ratio of 24.11, IGT presents a mixed financial picture. Notably, the company has shown resilience with a gross profit margin of nearly 49% over the last twelve months as of Q4 2023.

Two InvestingPro Tips highlight key aspects for potential investors. Firstly, IGT has demonstrated consistent shareholder commitment by maintaining dividend payments for 10 consecutive years, currently offering a dividend yield of 3.88%. Secondly, despite recent price volatility and trading near its 52-week low, analysts remain optimistic about sales growth in the current year and predict profitability for IGT.

For those looking to delve deeper into IGT's financials and future prospects, InvestingPro offers additional insights and tips. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover why analysts believe IGT is likely to be profitable this year, among 6 other InvestingPro Tips available at: https://www.investing.com/pro/IGT.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.