DB Analysts Initiate Coverage on Several Gaming Stocks
Wednesday, September 21, 2021 3:51 PM



Analysts at Deutsche Bank initiated coverage on eight gaming operator stocks and four gaming equipment suppliers. They set Hold rating for Ameristar Casinos Inc. (Nasdaq: ASCA), Boyd Gaming Corp. (NYSE: BYD), Bally Technologies Inc. (NYSE: BYI), International Game Technology (NYSE: IGT), Pinnacle Entertainment Inc. (NYSE: PNK), and WMS Industries Inc. (NYSE: WMS). They initiate Buy ratings on Isle of Capri Casinos Inc. (Nasdaq: ISLE), Las Vegas Sands Corp. (NYSE: LVS), MGM Resorts International (NYSE: MGM), Penn National Gaming Inc. (Nasdaq: PENN), Scientific Games Corp. (Nasdaq: SGMS), and Wynn Resorts Ltd. (Nasdaq: WYNN).

 

DB analysts state that despite the significant run in shares over the past two and a half years, most notably in the large cap names, they believe selective upside remains given their view of continued upward estimate revisions for the Macau gaming market, improving operating leverage, appropriate buy-side expectations for the methodical recovery of the LV Strip, reasonable valuations, and considerable unaccounted for pipeline / option value. They pick LVS, WYNN and MGM as their top overall pick. They state that ISLE and PENN are the best ways to play the domestic regional names. They add that while the space looks inexpensive relative to history, the companies struggle to believe inexpensive valuations are reasons to own the slot manufacturers at this time. They state that risks to their coverage universe include global macroeconomic turmoil, changes in investor sentiment and the volatility inherent in this high-beta sector, and legislative events that could add competition or increase taxes.

 

On a year-to-date basis, Ameristar has a share performance of 15.23 percent, and as compared to Standard & Poor’s 500, it has an YTD share performance of 19.17 percent. Boyd has an YTD share performance of -42.74 percent, and as compared to S&P 500, it has an YTD share performance of -40.78 percent. Bally has an YTD share performance of -29.86 percent, and as compared to S&P 500, it has an YTD share performance of -27.46 percent. International Game Technology has an YTD share performance of –13.34 percent, and as compared to S&P 500, it has an YTD share performance of -10.37 percent. Pinnacle has an YTD share performance of -15.48 percent, and as compared to S&P 500, it has an YTD share performance of -12.58 percent. WMS has an YTD share performance of -56.28 percent, and as compared to S&P 500, it has an YTD share performance of -54.78 percent. Isle of Capri has an YTD share performance of -40.80 percent, and as compared to S&P 500, it has an YTD share performance of -38.78 percent. Las Vegas Sands has an YTD share performance of 3.29 percent, and as compared to S&P 500, it has an YTD share performance of 6.82 percent. MGM has an YTD share performance of -27.34 percent, and as compared to S&P 500, it has an YTD share performance of -24.85 percent. Penn has an YTD share performance of 3.81 percent, and as compared to S&P 500, it has an YTD share performance of 7.37 percent. Scientific Games has an YTD share performance of -20.78 percent, and as compared to S&P 500, it has an YTD share performance of -18.07 percent. Wynn has an YTD share performance of 46.49 percent, and as compared to S&P 500, it has an YTD share performance of 51.51 percent.

 

Shares of Ameristar fell 1.97 percent or 35 cents to trade at $17.41. Shares of Boyd added 0.18 percent or 1 cent to trade at $5.62. Shares of BYI gained 0.94 percent or 27 cents to trade at $28.89. Shares of IGT were down 0.20 percent or 3 cents to trade at $15. Shares of PNK fell 1.92 percent or 21 cents to trade at $10.75. Shares of WMS added 2.34 percent or 43 cents to trade at $18.78. Shares of ISLE gained 1.32 percent or 7 cents to trade at $5.37. Shares of LVS added 0.86 percent or 47 cents to trade at $49.07. Shares of MGM were up 1.45 percent or 16 cents to trade at $11.17. Shares of PENN slipped 0.20 percent or 7 cents to trade at $35.57. Shares of SGMS rose 2.86 percent or 21 cents to trade at $7.54. Shares of WYNN were down 1.94 percent or $2.76 to trade at $150.45.


 

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