So, can I find out why Deutsche Bank remains high on IGT’s Slot Machine Futures? When it comes to investing, it is important you do your research. Furthermore, this applies to invest in anything, including casino gambling. Moreover, it comes with a certain level of risk. Yes, Stock tips are a dime a dozen and millions of dollars. Additionally, most tips are for business ventures that fail to pan out. However, one of the fastest growing industries is been real money gambling. More specifically, the industry is at land-based casinos and at online casino gambling sites. As we Drive this growth, we can see it is real money gambling on slot machine games.
While the entire real money betting industry continues to expand across the country and around the globe. Yes, there are certain companies benefitting from this growth. Also, there are others that have been battling negative trends in recent years. One of the top players when it comes to building slot machines is International Gaming Technology, which is better known as IGT. As one of the top producers of slot machines on a global scale, it has recently caught the eye of Deutsche Bank for its upside investment potential. Read more about International Gaming Technology and other software developers over here.
Indeed, Deutsche Bank’s US-based stock brokerage branch released a report on the positive feedback that IGT has received for its slot machine products. This was in light of the company’s recent downward forecast for the third and fourth quarters by Union Gaming based on a lower than expected rate of growth.
First of all, there is a positive outlook. Furthermore, Deutsche Bank releases data last week. Overall, they base these conversations with casino operators. However, this data is prior to a recent gaming industry trade show. A direct quote in this post by Deutsche Bank analysts Danny Valoy and Carlo Santarelli concluded that “The feedback on IGT’s for-sale product was very favorable .” The pair went on to add, “Operators noted…specifically, the product coming from the legacy GTech studios has played very well, which has helped IGT drive increasing ship share in casino-operator-purchased video product in 2018.”
It was mentioned that GTech merged with IGT three years ago. GTech was the principal in the merger, but the company decided to move forward as IGT.
Another plus for IGT was its ability to use significant feedback from customers to improve the development of slot machine games, particularly when it came to premium products. IGT management was also quick to note that included in this feedback was a high level of customer satisfaction in terms of add-ons being ‘incorporated into the company’s systems technology’.
Indeed, the analysts also make a note. He says “IGT believes its ability to provide scalable solutions for smaller-to-medium-size casino operators. Also, they represent an incremental opportunity to address a previously customer base.”
More news out of IGT referred to its plans to sell 6,000 slot machines to Sweden with 4000 units expected to be delivered by the end of this year. The remainder of the slot machines will be incorporated into the company’s financial results for the first quarter of 2019 based on actual delivery.
Indeed, part of Deutsche Bank’s analysis includes IGT’s turnover. Furthermore, they anticipate as many as 35,000 slot machines in the Canadian market. More specifically, they predict these numbers from 2019 through 2021 with new units. Along with Union Gaming, Deutsche Bank maintains a “buy” recommendation for IGT. Moreover, their target share price of $35.