NeoGames Downgraded To Hold By Analyst Amid Aristocrat Leisure Acquisition

Truist Securities analyst Barry Jonas downgraded NeoGames SA NGMS to Hold from Buy at an increased price target of $29.5 from $21.
The analyst lowered the rating on NGMS following rocketing share prices post the announcement of the acquisition by Australian gaming and technology company Aristocrat Leisure Limited.
NGMS will be acquired for $29.50 per share in an all-cash transaction, representing an enterprise value of approximately $1.2 billion. The price represents a premium of around 130% to NGMS' May 12, 2023, closing price.
Jonas thinks the acquisition will boost NGMS's long-term prospects and expects the company to achieve the revenue target of $500 million by 2028.
The analyst believes the deal will further boost Aristocrat Leisure's competitive positioning in the Digital gaming/iLottery space.
The analyst estimates NGMS' EBITDA of $82 million (consensus: $80 million) for 2023 and $89 million (in line with the consensus) for 2024.
Price Action: NGMS shares are trading higher by 0.57% at $27.33 on the last check Tuesday.