EVRI - The Sneaky High-Risk Bull Case For International Game Technology
Both the bull and bear cases for gaming and lottery provider International Game Technology (IGT) seem reasonably easy to make. The bull case is that IGT is cheap, trading at 6.2x EV/EBITDA, based on 2018 guidance, and 9.6x 2019 consensus EPS. The lottery business - 50% of revenue - should be reasonably stable and throws off tons of cash. There's a nice deleveraging story here and potential boosts to the gaming business from an improving slot machine replacement cycle, online gambling, and sports betting.
IGT has pulled back sharply of late - it's