teven Kent expects International Game Technology will roll out a restructuring that brings profit margins near last year’s 30 % range. The company may also be able to capitalize on its exposure at the Global Gaming Expo slot machine trade show being held in Las Vegas in November, which could bring in new business.
Kent said the Reno, Nevada-based maker of slot machines and casino systems could gain from the economic difficulties currently plaguing many states. As states grapple with meeting their budgetary needs, the allure of adding gaming facilities to help narrow deficits becomes more appealing. The additional capacity also helps gaming equipment makers and casino operators.
"New markets opening may offset delays in casino expansions or replacements," Kent wrote in a client note. The analyst maintained a "Buy" rating.
On Tuesday International Game Technology’s stock slumped to a six-year low as a Roth Capital Partners LLC analyst said his legal sources indicated the company might face an unfavorable ruling on certain patents in its dispute with Bally Technologies Inc.
Shares of International Game Technology rose us$ 1.71, or 10.2 %, to us$ 18.44. The stock has traded in a 52-week range of us$ 15.22 to us$ 49.41.