IGT - Everi Holdings: Merger Uncertainty Creates Opportunity

2024-06-17 18:47:30 ET

Summary

• Everi Holdings Inc.'s common stock is undervalued due to uncertainty surrounding a proposed merger with IGT and recent softness in gaming fundamentals.
• The merger with IGT's gaming businesses will create a diversified gaming/FinTech company with significant return potential.
• Everi's strong FinTech business, recurring revenue, and management's strategic initiatives provide a margin of safety and growth opportunities for investors.
• Asymmetry exists whether the merger is approved or not.

Summary

I believe Everi Holdings Inc.'s ( EVRI ) common stock is trading at a discount to intrinsic value. This discount is a result of uncertainty surrounding the proposed merger with IGT's gaming businesses and recent softness in Everi's gaming fundamentals. Regardless of the merger outcome, Everi has significant return potential at current market prices....

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