Analyst Steven Pizzella of Deutsche Bank reiterated a Buy rating on Accel Entertainment (ACEL – Research Report), with a price target of $13.00.
Steven Pizzella has given his Buy rating due to a combination of factors including Accel Entertainment’s consistent performance and strategic growth prospects. The company delivered solid quarterly results, surpassing both the Deutsche Bank’s model and the Bloomberg consensus on key financial metrics such as net revenue and Adjusted EBITDA. Furthermore, the company demonstrated resilience with same-store growth and experienced a notable increase in revenue during December, benefitting from favorable weather and advantageous timing of the New Year’s Eve celebration.
The positive outlook for Accel Entertainment is also supported by its growth in locations and market share gains in Illinois, as well as its successful expansion into other markets such as Montana and Nebraska. Despite the challenges posed by inflation affecting labor and parts costs, the management has effectively maintained the cost structure. Pizzella’s confidence in the stock is reinforced by the company’s ability to continue growing its location base, which is a critical element of their long-term growth strategy, outweighing potential macroeconomic headwinds.
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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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