In a report released yesterday, Barry Jonas from Truist Financial maintained a Buy rating on Everi Holdings (EVRI – Research Report), with a price target of $16.00.
Barry Jonas has given Everi Holdings a Buy rating due to several factors. Despite near-term headwinds and revised 2023 guidance, Jonas believes that the company’s new gaming cabinets and themes could drive a return to growth in 2024. He anticipates better visibility over the next few quarters and sees significant upside if the new offerings prove successful. Additionally, he notes a valuation backstop on a standalone or break-up basis.
Jonas has also taken into consideration the company’s Q3 results, which reported an adjusted EBITDA of $96M, in-line with street estimates and 1% ahead of his own. While one-time sales declined, recurring revenues grew by 7%. Despite lowering the FY23E/FY24E EBITDA estimates and the price target, Jonas remains bullish due to the shares trading at approximately 5x 2023E EV/EBITDA and a ~15% FCF yield. He also accounts for the company’s management’s plans for deploying new gaming cabinets by the year-end and launch of new models in the future.
Jonas covers the Real Estate sector, focusing on stocks such as MGM Resorts, Red Rock Resorts, and Bally’s Corporation. According to TipRanks, Jonas has an average return of 5.1% and a 34.40% success rate on recommended stocks.
In another report released today, Craig-Hallum also reiterated a Buy rating on the stock with a $18.00 price target.
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Everi Holdings (EVRI) Company Description:
Everi Holdings, Inc. engages in the provision of technology solutions to the casino gaming industry. It operates through the Games and FinTech segments. The Games segment provides solutions directly to gaming establishments to offer patrons gaming entertainment related experiences such as: leased gaming equipment; sales and maintenance related services of gaming equipment; gaming systems; and ancillary products and services. The FinTech segment includes gaming establishments to offer patrons cash access services and products including: access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions and point of sale debit card cash access transactions; check-related services; fully integrated kiosks and maintenance services; compliance, audit and data software; casino credit data; and reporting services and other ancillary offerings. The company was founded on February 4, 2004 and is headquartered in Las Vegas, NV.
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