Stifel Maintains Buy Rating on International Game Technology (IGT), Keeps PT

On June 4, Stifel analysts reaffirmed their $20 price target and Buy rating for International Game Technology PLC (NYSE:IGT). This follows a series of investor meetings with IGT’s Chief Financial Officer and Investor Relations team at Stifel’s annual Cross-Sector Insight Conference.

Among the important takeaways from the conversations, the analysts pointed out that IGT management is still maintaining return estimates for a recently acquired Lotto contract. The company also expressed hope for its future, despite acknowledging that new digital development sectors involve greater risks and uncertainty.

Although the risk/reward balance of the Lotto contract did not turn out as expected, Stifel analysts remain optimistic about IGT shares. They believe that cycle-normalized free cash flow expectations above $1.50 per share might propel the stock to over $20 per share. The expected return of cash from G&D efforts may also operate as a favorable catalyst, according to the analysts. Once the current capital expenditure cycle is over, they expect a rise in share repurchases.

International Game Technology PLC (NYSE:IGT) is a multinational gambling company that produces slot machines and other gambling technology.

While we acknowledge the potential of IGT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IGT and that has 100x upside potential, check out our report about the cheapest AI stock.

Read More: 10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust and 15 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.

Disclosure: None.