Scientific Games Corp. a Winner

Scientific Games Corp. (SGMS - Analyst Report) has a leading position in several markets, including the instant ticket and online lottery markets. In addition, Scientific Games continues to win significant contracts in both the instant ticket and online lottery markets from both domestic and international lottery authorities.

Also, the company has made several acquisitions that have accelerated top-line growth. Ron O. Perelman, a world-renowned private investor, owns 28% of the company's stock. The Buy rating is maintained.

Recent dilutive acquisitions and the company's leveraged balance sheet somewhat mitigate the company's international expansion initiatives and cost containment efforts. The 6-month target price of $20.75 is based on a 20 P/E multiple on 12-month trailing earnings.