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 is a multinational gambling company that produces slot machines and other gambling technology.
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