GAN - Casino stocks viewed favorably by Jefferies with digital shift M&A potential supporting valuations

Jefferies reports back from the huge Global Gaming Expo conference this week out of Las Vegas. Analyst David Katz says digital strategies are a prominent theme across the gaming industry. The focus of suppliers is said to be on leveraging content from traditional slots and tables in digital formats for iGaming and Social. When factoring in overall accelerating demand trends, more M&A could be in the mix. "We expect companies both large and small to remain active on both sides of digital M&A, as suppliers and operators focus on building competitive positioning and broader capabilities. From this perspective, we believe valuations are secondary to validated capabilities as the Street's focus shifts to technology and content from access to markets and customers. We therefore believe it is appropriate to continue more positively skewed ratings on both casino operators and equipment and technology providers." Jefferies favors Caesars Entertainment (CZR +3.1%) and Everi

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Casino stocks viewed favorably by Jefferies with digital shift, M&A potential supporting valuations