In a new investor report, B Riley analyst David Bain recommends slot suppliers Everi and PlayAGS, saying both are “poised for strong share price gains” this year.
Bain cited a 35 percent increase in the North American slot-replacement cycle, plus demand for new machines for casino openings and expansions slated for this year.
“Increased buying activity has begun, particularly by certain gaming tribes with October FY year-end,” Bain wrote of Everi and AGS share. “Contacts at large commercial regional casinos also indicate larger budgets geared toward slot purchases.”
Bain’s research shows gains for both PlayAGS and Everi as this increased buying activity continues. “(Everi) was the only domestic-listed casino supplier with higher 3Q21 game sales than 3Q19,” he wrote. “It also continues to lead domestic suppliers in gaming operations daily win per unit growth and unit placements, now for multiple consecutive quarters…
“Given EVRI and AGS outperformance with newer offerings,” Bain wrote, “we believe both have strong pricing power even if inflation persists.”