International Game Technology
) marked its debut in the state of Pennsylvania as it provided 40
server-based gaming slots to The Meadows Racetrack and Casino,
owned by Cannery Casino Resorts.
IGT's diversified gaming portfolio lets The Meadows Racetrack
and Casino enhance its entertainment value and attract new clients.
Moreover, The Meadows Racetrack and Casino's brand value gets a
boost as it will be the first casino in Pennsylvania to offer IGT's
As for IGT, venturing into Pennsylvania expands its footprint to
a relatively new market. IGT's casino gaming solutions are cost
effective and improves Casino's bottom line. IGT's business is also
likely to benefit as more casinos in Pennsylvania start installing
IGT's popular server-based games to attract clients.
Separately, IGT has been making headway with its DoubleDown
Casino online interactive games. Recently, IGT had secured its
first land-based deal in Las Vegas as it entered into a partnership
with Hard Rock Hotel and Casino. IGT had also secured a similar
deal with Jacobs Entertainment last month.
We believe that these new contract wins and international
expansion opportunities, an impressive product portfolio, reduced
dependence on the domestic machine replacement cycle and strong
growth from the interactive business will likely drive IGT's growth
going forward. Moreover, an improvement in the domestic gaming
environment would prove to be a positive catalyst for the company
Additionally, IGT is keeping pace with the technology demands of
the day and has made headway with its IGT Cloud. We expect the IGT
Cloud services to gain traction in the casino gaming industry, as
it is expected to be well received by new casino properties,
thereby improving the company's top line.
However, we believe that the increasing investment in product
development will drive operating costs, which will remain an
overhang on the stock in the near term. Moreover, fewer new
openings and increased competition from
Bally Technologies Inc.
WMS Industries Inc.
) will keep the stock range bound in the near term.
We have a Neutral recommendation on the stock over the long term
(6-12 months). Currently, IGT carries a Zacks #3 Rank, which
implies a Hold rating in the short term.
BALLY TECH INC (BYI): Free Stock Analysis
INTL GAME TECH (IGT): Free Stock Analysis
WMS INDS INC (WMS): Free Stock Analysis Report
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