Steven Pizzella, an analyst from Deutsche Bank, reiterated the Buy rating on Accel Entertainment (ACEL – Research Report). The associated price target is $13.00.
Steven Pizzella’s Buy rating for Accel Entertainment is influenced by several factors. Firstly, Accel Entertainment has consistently reported strong financial quarters. This latest quarter’s results surpassed both Deutsche Bank’s and Bloomberg’s expectations on the top and bottom lines. The results were driven by the addition of new locations, an increase in MT revenue, and a growth in same-store IL. Moreover, the company’s adjusted EBITDA margins were slightly down, but the company continues to explore multiple opportunities across the country to diversify their revenue.
Further, the company showed a strong M&A pipeline which indicates potential for future growth. The company also has a robust balance sheet with significant capacity. Despite not issuing guidance due to macro uncertainties, the demand remains strong and if current trends persist, the company expects to end the year with record-breaking results. Accel Entertainment also demonstrated its ability to return capital to shareholders by repurchasing stocks. Given these factors, along with Accel’s attractive valuation and potential for expansion, Steven Pizzella maintains a Buy rating.
In another report released on October 27, Northland Securities also maintained a Buy rating on the stock with a $15.00 price target.
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Accel Entertainment (ACEL) Company Description:
Accel Entertainment, Inc. engages in the installation and operation of video gaming terminals in licensed video gaming locations. It also operates redemption terminals. The company was founded on December 8, 2010 and is headquartered in Burr Ridge, IL.
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