Truist downgrades International Game Technology and Everi to "hold" on merger

Everi Holdings

01/03/2024 13:59

** Casino platform provider Every Holdings'  EVRI.N  shares
fall 3.1% to $11.49 premarket
    ** Brokerage Truist downgrades UK-based gaming company
International Game Technology  IGT.N  and EVRI to "hold" from
"buy"
        ** IGT shares flat at $27.17
  
    ** Sees near-term risks on IGT splitting its lottery
business from gaming unit and merging it with EVRI forming a
$6.2 billion entity including debt
    ** "...we think shares will likely be range bound in the
near-term until investors get comfortable around integration and
synergies" - Truist
    ** Says investors also want resolution on upcoming renewal
of the Italian national lottery concession contract, with IGT’s
current exclusive contract expiring end of October 2025 
    ** "While we fully expect IGT to win the renewal, we think
some sort of rate contraction or license fee increase is likely
and could impact returns" - brokerage
    ** Also lowers price target of IGT to $30 from $32 and EVRI
to $13 from $14
    ** So far in 2024, EVRI had fallen 5.2% and IGT had fallen
0.9%

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))