Credit Suisse Downgrading WMS Industries

Credit Suisse is out with a research report on WMS Industries. Inc. WMS and is downgrading shares to Neutral and cutting the price target to $24 from $48. In a note to clients, Credit Suisse writes, "WMS reported 4Q11 EPS of $0.44 versus our estimate of $0.56 and consensus of $0.53. We have tried to give WMS the benefit of the doubt in recent quarters. Unfortunately in this tape the company's continued challenges mean that shares will likely remain under pressure. Given the non-core nature of gaming supplier stocks in investor portfolios, the stock may lag in a recovery, despite its strong balance sheet, good long-term positioning, and innovative technology. While we believe in WMS for the long run, we would rather revisit shares at a more compelling entry point." Shares of WMS are down $4.03 in pre-market trading to $21.25.