SGMS - Scientific Games breaks out after investors overcome jitters about lottery sale
Scientific Games (SGMS +8.7%) regains a large chunk of its loss from last week after investors take a more favorable view of the deal with Brookfield Asset Management to sell the SG Lottery global lotteries business for $6.05B. Jefferies analyst David Katz says no aspect of the development should have been surprising. "The remaining slot machine business and gaming systems business should be enhanced over time, given the personnel additions, but are not high-growth enterprises. The digital gaming businesses-real money B2B, real money B2C and social gaming-are intended to be higher growth areas both organically and through M&A, according to Mgt's prior commentary." Katz and team expect there should be considerable commentary from SGMS management on the earnings call next week on near term and long term strategies and earnings potential. Jefferies keeps a Buy rating on SGMS and price target of $96. See the recent track record for SGMS
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Scientific Games breaks out after investors overcome jitters about lottery sale