U.S. gaming analyst Steve Wieczynski of Stifel Financial Corp. has raised targets on several gaming suppliers including AGS, Everi and Scientific Games based on results from the Q1 Eilers-Fantini slot survey.
Wieczynski said that recurring revenue for AGS will benefit from regional and tribal exposure where casino operators are seeing stronger than expected demand.
In Everi’s case, the company’s gaming footprint continues to outpace peers with several years of strong research and development investment driving installs and net yield growth. There has also been growing traction around cashless gaming, accelerated by covid-19.
The analyst also noted that Scientific Games shares have recovered well past pre-COVID levels. In addition, the lottery has proven resilient, while digital and social gaming has benefitted from stay-at-home orders.
Cashless gaming, slot systems, iLottery contracts and the SciQ product could be potential growth drivers, he said.
Macau's narrow economic base and its high concentration of tourists from China restrain the city's credit rating and have contributed to historically high levels of gross domestic product volatility, Fitch Ratings says.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.