Credit Suisse Has Outperform On International Game Technology

Credit Suisse is out with a research report on International Game Technology IGT and it has an Outperform rating and a $24 price target on shares. In a note to clients, Credit Suisse writes, "IGT reported 3Q11 adjusted EPS of $0.26 versus our estimate of $0.23 and consensus of $0.22. Adjusted EBITDA was $205.3m versus our estimate of $199.7m and consensus of $180.2m. Domestic unit sales recognized of 4,900 in Q3 came in about 500 units above our expectations while Domestic ASP increased to $14,367 (+2%YoY) as we believe discounting has largely ended. Product sales margins expanded 135 bps YoY to 56%, nicely ahead of our projection of 52.5%. Gaming operations WPD per device increased to $55.55 (+3% YoY) as new game content is earning at a high level, further confirming positive comments we have heard about American Idol, Sex in the City 2, Hangover, and new versions of the venerable Wheel franchise from our slot manager contacts. We believe the June quarter is yet another signal to naysayers that IGT is back on track, as organizational initiatives over the last two years have led to discernible traction in the business." Shares of IGT closed at $18.09 yesterday.