Macquarie analyst Chad Beynon has maintained their bullish stance on ACEL stock, giving a Buy rating today.
Chad Beynon has given his Buy rating due to a combination of factors surrounding Accel Entertainment’s impressive financial performance and strategic business positioning. Despite challenges such as unfavorable weather conditions, Accel has reported its sixth consecutive quarter of revenue, EBITDA, and EPS surpassing consensus estimates, underlining consistent outperformance. This trend of exceeding expectations is further reinforced by the company’s successful expansion into new locations, driving year-over-year revenue growth. Additionally, the company’s hyperlocal business model has proven resilient across economic cycles, contributing to Beynon’s positive outlook.
Moreover, Beynon is optimistic about Accel Entertainment’s potential for growth through gaming expansion and mergers and acquisitions, which are seen as major catalysts for the company. The firm maintains a robust acquisition strategy and is well-positioned for opportunistic growth given its low leverage ratio. Accel’s attractive valuation relative to its historical trading range and its stable, recurring cash flows from its distributed gaming operations also play a critical role in securing the Buy recommendation. Beynon’s analysis suggests that Accel Entertainment presents a compelling investment opportunity with a favorable risk-reward profile for investors looking to engage with the US consumer and state gaming sectors.
In another report released today, Deutsche Numis also reiterated a Buy rating on the stock with a $14.00 price target.
ACEL’s price has also changed slightly for the past six months – from $10.930 to $11.610, which is a 6.22% increase.
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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.
