{"id":77853,"date":"2024-03-13T04:30:23","date_gmt":"2024-03-13T09:30:23","guid":{"rendered":"https:\/\/equitynewsreport.com\/jefferies-cuts-igt-stock-target-to-26-maintains-hold-rating\/"},"modified":"2024-03-13T04:30:23","modified_gmt":"2024-03-13T09:30:23","slug":"jefferies-cuts-igt-stock-target-to-26-maintains-hold-rating","status":"publish","type":"post","link":"https:\/\/equitynewsreport.com\/h\/jefferies-cuts-igt-stock-target-to-26-maintains-hold-rating\/","title":{"rendered":"Jefferies cuts IGT stock target to $26, maintains hold rating"},"content":{"rendered":"
\n
\n\"Jefferies
\n\u00a9 Reuters. <\/span>
\n<\/i>\n<\/div>\n

On Wednesday, Jefferies adjusted its outlook on International Game Technology (NYSE:), reducing the stock’s price target to $26.00 from the previous $30.00 while retaining a Hold rating on the shares. <\/p>\n

The adjustment followed IGT’s trading activity, which saw a decline during Wednesday’s session despite a reported 2% beat in Q4 adjusted EBITDA. The reduced price target stems from several factors that could affect the company’s stock performance in the near term.<\/p>\n

Analysts pointed to a slight downward trend in Global Lottery estimates, which was indicated by same-store sales growth and operating income margin guidance. Additionally, there were concerns regarding the expected upfront payments associated with the Lotto contract process. <\/p>\n

Another contributing factor was the ongoing investor confusion and frustration regarding the tax structure for the pending spin-off of IGT’s Global Gaming and PlayDigital businesses.<\/p>\n

Jefferies noted that while the long-term prospects for IGT remain promising, particularly as a standalone lottery business potentially receiving a more fitting valuation, the current sentiment suggests that the stock might not see significant movement until the completion of the spin-off deal. The uncertainty surrounding the tax implications and the Lotto renewal process could keep shares within a certain trading range for the time being.<\/p>\n

Following these considerations, Jefferies also revised its financial model for IGT, reducing the forecasted adjusted EBITDA by 4% for fiscal year 2024 and by 5% for fiscal year 2025. This revision aligns with the newly set price target of $26.00 and reflects the firm’s cautious stance on the stock in light of the identified challenges and uncertainties.<\/p>\n

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. On Wednesday, Jefferies adjusted its outlook on International Game Technology (NYSE:), reducing the stock’s price target to $26.00 from the previous $30.00 while retaining a Hold rating on the shares. The adjustment followed IGT’s trading activity, which saw a decline during Wednesday’s session despite a reported 2% beat in Q4 adjusted EBITDA. The reduced price target stems from several factors that could affect the company’s stock performance in the near term. Analysts pointed to a slight downward trend in Global Lottery estimates, which was indicated by same-store sales growth and operating income margin guidance. Additionally, there were concerns […]<\/p>\n","protected":false},"author":5,"featured_media":77854,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50,48,49,3],"tags":[],"_links":{"self":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77853"}],"collection":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/comments?post=77853"}],"version-history":[{"count":0,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77853\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media\/77854"}],"wp:attachment":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media?parent=77853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/categories?post=77853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/tags?post=77853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}