Morgan Stanley Comments on International Game Tech's Long-Term Positioning

Morgan Stanley has published a report on International Game Tech IGT. In the report, Morgan Stanley wrote, "We expect IGT to report a generally inline F3Q11, highlighting the sustainability of recent ship-share gains and Game-Ops performance. We believe momentum in core metrics, esp. in domestic Game Ops, should offset “noise” from the Barcrest sale and the uncertain timing of recognition of deferred revenue. Upside in the Q appears slight (MS and consensus EPS of $0.22), though SG&A savings and margin gains could more than offset the potential negative impact from Barcrest ($0.01) and the lack of recognition of CityCenter unit sales in the Q. We expect the CityCenter recognition to occur in F4Q or early FY12." Morgan Stanley rated International Game Tech an Overweight with a price target of $21.00. International Game Tech closed Thursday at $18.35.