Gaming equipment company International Game Technology (IGT) announced last week that it will increase its share buyback plan to $1 billion, which CLSA analyst Jon Oh took as a sign that the company is focusing more on the needs of its shareholders.
“This is the first major share repurchase exercise since 2008 and it demonstrates to us that IGT is resuming a more shareholder-friendly stance, giving us comfort in the state of their core business. This signals a return of balance sheet discipline that was somewhat lost in the past few quarters; and indicates that management is taking heed of investor feedback.”
Oh increased his price target to $18.40 per share from $18 and raised his rating to Buy from Outperform. IGT is down 0.4% at $14.82 this morning.
Barrons.com’s Dimitra Defotis also wrote last week that the buyback is just one sign that IGT stock has a bright future. The company should be able to capitalize on the expansion of gambling into new states, she noted.
No comments:
Post a Comment