PlayAGS Stock Inexpensive Despite Attractive 2023 Outlook
PlayAGS (NYSE: AGS) stock up entered Tuesday with a year-to-date take in of 43.14% — undecomposed for single of the best performances inward the gaming equipment blank space — but some analysts believe the shares could generate more upside o'er the row of 2023.
Following recent virtual meetings with PlayAGS CEO Dave Lopez and other executives, Stifel psychoanalyst Jeffrey Stantial came forth constructive on the stock, citing factors such as becalm wagering trends, a warm production pipeline, and up relationships with high-altitude corporate customers, among other factors.
Based on AGS’s geographically diversified recurring revenue footprint, real-time discussions with manipulator customers, and monthly state-reported GGR data, direction cited stalls wagering trends thusly far into 2023,” noted Stantial.
That’s an important reflection because there’s interest that macroeconomic headwinds could compel consumers to rein in inwards gaming-related spending. Stantial reiterated a “buy” rating and a $10 price mark on one-armed bandit political machine maker shares, implying an upside of 37% from the Apr 3 close.
PlayAGS Stock Hot, but Cheap
With a securities industry capitalization of $268.84 million, PlayAGS qualifies as a small-cap gunstock and a growth name. Combine those traits with the aforementioned year-to-date rate, and it would follow sane to trust valuation is stretched on the stock. That’s not the case.
Additionally, the investiture thesis could live supported past the elaboration of tribal gaming clients in Florida, Texas, and Oklahoma. Plus, the shares are noticeably cheap.
Valuation continues to dawdle peers, mostly reflecting concerns on leveraging & misleading optics around a late-2022 secondary sale. We insure this price reduction farther closure as trial impression points on up carrying out & basics accumulate,” added Stantial.
Another power point inwards favor of the buy in is strong sales visibleness as far out as three months, indicating the strong topline trends seen to pop the twelvemonth could run o'er fountainhead into the secondly quarter.
“Encouragingly, management cited a robust for-sale line into Q2 (typically 60-90 years of visibility), suggesting operators keep to allow stalls underlying exact trends get slot flooring reinvestment decisions kinda than concerns on an unsure macro instruction outlook,” said Stantial.
PlayAGS Changes Benefiting Stock Price
In improver to efforts to dramatically bring down leverage, PlayAGS is taking steps to rectify errors made inward its early childhood as a public company. That’s to say, the slot maker is investing more inwards search and developing and taking steps to wrest securities industry divvy up from rivals.
While noneffervescent early, we’ve begun to see these changes render to improved operating momentum specifically highlighting 1) >4% ship portion (adjusted for Canada/Oregon VLTs) for sestet sequential quarters 2) septet sequential quarters of >100 units of sequential ontogenesis in premium leased installations with Y/Y ontogeny in Q4 leading the match group, and 3) six sequential quarters of >20% Y/Y ontogeny in Table Products adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA),” concluded Stantial.
Additionally, PlayAGS’s up basics could funding the stock up if casino operators ordered series dorsum one-armed bandit purchases inwards the secondment half of this year due to trying economic conditions.
Join the thousands of satisfied players at 918Kiss - the most popular and trusted online casino platform in Malaysia! Play now and win big!