EVRI - Everi Holdings gains as Stifel names it 'top idea' in gaming

Everi Holdings ( NYSE: EVRI ) shares rose sharply on Monday as Stifel’s review of the Global Gaming Expo in Las Vegas lauded the company’s trajectory.

A team of analysts led by Jeffrey A. Stantial and Steven M. Wieczynski indicated that the company’s exposure to regional and tribal operators should leave it better positioned in a potential economic downturn. Further, the firm’s channel checks suggest that the company should gain slot shipment share and aid in the overall increase in technology on casino floors, both of which are underappreciated in the firm’s view.

“Our top idea coming out of the conference remains EVRI given product momentum, accretive FinTech tuck-ins, a pristine balance sheet, and potentially accelerating cashless adoption trends, while we also favor [PlayAGS] ( AGS ) into year-end given a pronounced dislocation between operating momentum and relative valuation,” the analysts said.

The analysts reiterated a “Buy” rating on the stock and assigned a $24 price target. Shares rose 3.91% in Monday’s trading.

Among casino operators, Bally's Corporation ( BALY ) and Caesars Entertainment ( NASDAQ: CZR ) were given “Buy” ratings after discussions with the casinos’ respective management teams. The former was highlighted for its “compelling de-leverage story” and investment in numerous high-return projects, while the latter was touted as a key way to play a resurgence in Las Vegas trends.

“We believe current trading levels are massively undervaluing the long-term growth opportunities of this company,” the team said of Caesars Entertainment ( CZR ). “With CZR you get the best management team in gaming and a company that will produce significant FCF in any normalized environment.”

As such, Caesars Entertainment ( CZR ) was assigned a “Buy” rating and a $63 price target. However, Stifel’s analysts indicated the share price “could expand well beyond that” if macroeconomic conditions improve.

Shares of Caesars Entertainment ( CZR ) rose 6.48% in Monday’s trading.

Read more on Caesars’ latest balance sheet maneuvers .

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