Scientific Games Corp. (SGMS)
by Zacks Equity ResearchOctober 03, 2012 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
We believe that the visibility regarding its privatization and outsourcing of state lottery management, while a major growth opportunity, remains murky, thereby adding significant uncertainty to the stock. Moreover, increasing investments for product development and strong competition is expected to hurt profitability in the near term.
Overall, this negative scenario compels us to downgrade the stock to an Underperform recommendation. We set a price target of $7.25, which implies a P/E multiple of 80.6X our 2012 earnings, a premium to both industry and S&P 500 average.
Read the full reports :
Please login to Zacks.com or register to post a comment.