ACEL - Accel Entertainment: A VGT Leader Poised For Takeoff
2024-03-21 10:28:27 ET
Summary
- Accel Entertainment is a leader in the VGT market with a loyal customer base and long-term contracts, making it a strong investment opportunity.
- The company faces competition in the distributed gaming industry, particularly in Illinois, but its market position and strategic growth plans protect its returns.
- Accel has growth opportunities in new markets where VGTs are permitted and through acquisitions, positioning it for future success in the expanding VGT market.
Introduction
Accel Entertainment (ACEL) stands out as a compelling investment opportunity with substantial upside potential in the ever-competitive gambling world. This leader in the virtual gaming terminal ("VGT") market boasts a loyal customer base locked in by long-term contracts, creating a solid foundation for future growth. Beyond its current market dominance, Accel is poised for significant expansion into new, high-growth territories with favorable regulations. This strategic move, coupled with a focus on shareholder value by management and an undervalued stock price, makes Accel stock a clear buy recommendation for investors seeking exposure to the burgeoning VGT market. While some uncertainties exist, Accel's robust market position, strategic growth plans, and attractive valuation make it a well-positioned company for long-term success.