Homepage / Investment / The stock that’s surged 150 percent this year – and could rise even higher
Jogue Por Dinheiro Actual Em Cassino Onlin Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Zakłady Sportowe Online Obstawiaj U Bukmachera Gg Be What Industries Use Virtual Data Room? Advantages of a Data Room What Does a Board Room Provider Do? Data Room Analysis for Venture Capital Funding The Importance of Board Reporting Software Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals


The stock that’s surged 150 percent this year – and could rise even higher

One might say that Scientific Games shareholders have hit the jackpot.

Out of all the stocks in the broad S&P 1500 index with more than $2 billion in market capitalization, the best performer this year is Scientific Games.

A provider of technologies and services for casinos, lotteries and digital games, the company has seen its shares skyrocket 150 percent this year, and nearly 300 percent over the past 12 months.

Good news for the company has come in the form of an uptick in earnings, as well as an improving debt situation. Still, the company is clearly not for everyone.

Scientific Games’ ratio of net debt to earnings before interest, taxes, depreciation and amortization is above 7, according to a FactSet analysis of its most recent earnings report. And according to the ratings agencies, its debt remains well below investment grade.

Meanwhile, the stock’s rally appears to have taken analysts by surprise. The median price target is $35, a full $4 below where the shares closed on Tuesday. And the most common rating is hold, according to data compiled by FactSet.

Not everyone casts such an evil eye on the stock. Union Gaming analyst John DeCree raised his target to $41 from $31 on Tuesday morning, explaining that he is encouraged by the company’s ability to reduce its interest rate on more than $3 billion worth of loans in a refinancing.

“We’re continuing to see a levered equity that’s being looked at as down and out over the past 12 or 18 months, and it’s been doing quite well,” DeCree said Tuesday on CNBC’s “Trading Nation.” “They’ve finally been able to get some traction on deleveraging. … We think there’s more room to go.”

“There’s a little bit more on the cost improvement side that they can do,” DeCree added. “The topline trends are just starting to pick up — we see good gaming revenue in the regional U.S. and international as well, so we think Scientific Games product is positioned well.”

“We see some more meat on the bone, and we’re still bullish here.”

Still, the analyst acknowledges that the stock’s recent run may not have been driven entirely by fundamentals. The stock has been a popular target of bears, with short interest rising as high as 37.5 percent in early 2016, before sliding to a three-year low of 15.5 percent more recently, according to FactSet data.

Faced with a stock that’s doubly volatile thanks to a high degree of leverage and intense interest among shorts (not to mention its natural exposure to economic vacillations given its highly discretionary line of business) other analysts have simply thrown up their hands.

“We continue to have a difficult time formulating an actionable investment thesis on SGMS shares at current levels,” Stifel analyst Steven Wieczynski wrote in a recent research note. “On the one hand, the steady improvement in core business fundamentals, and the improved balance sheet flexibility for which it has allowed, has created a more approachable story, while on the other, the rapid ascent in the share price feels a little premature.”

Wieczynski maintains a hold rating on the stock, explaining that “we remain on the sidelines until a better entry point presents itself.”

Still, it is not difficult to see the bulls’ case on this volatile name.

“As long as the economy keeps trucking along and credit markets stay open, I think we’ll see another round or two of deleveraging over the next eight to 16 months for these guys, and as they chip away at that balance sheet and reduce debt, they’ll see some really strong equity value created,” DeCree said.

Source: Investment Cnbc
The stock that’s surged 150 percent this year – and could rise even higher

Comments are closed.