Goldman Sachs Upgrading WMS Industries

Goldman Sachs is out with a research report on WMS Industries Inc. WMS and is upgrading shares to Buy. In a note to clients, Goldman Sachs writes, "We are moving to a more balanced view on WMS and Bally (we upgrade both to Neutral from Sell) after significant underperformance, but maintaining our Sell rating on IGT. We still have a bearish view of the slot industry and maintain our Cautious coverage view. Thirteen months ago we turned decidedly more bearish than consensus on the slot sector and downgraded our coverage view to Cautious. Since that time WMS has missed estimates twice, Bally has missed estimates four times, and IGT has missed estimates once. During the same time period, WMS and Bally guided FY2011 below expected and gave initial FY2012 guidance below consensus." Shares of WMS closed at $21.49 yesterday.