Analyst remains upbeat on IGT
Slot machine giant International Game Technology wrote off a somewhat lackluster first quarter to the casino industry’s continued lack of interest in purchasing new gaming equipment.
Credit Suisse Securities gaming analyst Joel Simkins believes the slot machine maker is in good position once casino operators unloosen the grips on their wallets.
“Our long-term view remains unchanged as IGT is levered to a recovery in replacement demand, jurisdictional expansion, and improvement in gaming operations,” Simkins told investors this morning in a research note. “We believe the new management team is steering the ship in the right direction and the culture is improving.”
Simkins walked away from last November’s Global Gaming Expo in Las Vegas with a positive impression of IGT’s new slot machines. But, if reluctance toward buying new games continues, IGT now has the ability to wait it out.
“A strong balance sheet and more than $300 million of annual free cash flow cushion the downside.” Simkins said.
