Gaming analysts at three Wall Street firms initiated coverage last week on gaming supplier AGS, which conducted a successful initial public offering at the end of January as PlayAGS, Inc., with “Buy” ratings. A fourth initiated coverage with a “Hold” rating, but predicted a higher stock price.
Initial trading of AGS stock has been averaging $3 to $4 higher than the company’s IPO price of $16.
“We believe PlayAGS has exposure to several catalysts alongside a healthy gaming backdrop,” Macquarie Securities gaming analyst Chad Beynon wrote while initiating a buy rating of $25 per share. Beynon cited the company’s expansion into new markets such as the Philippines in predicting revenue increases, but emphasized high recent performance as well.
“Alongside top-tier product performance, PlayAGS has built a backlog of orders, and we assume that this business doubles in two years,” Beynon wrote.
Among other Buy ratings, Deutsche Bank gaming analyst Carlo Santarelli placed a $23 price target on PlayAGS and Steve Wieczynski of Stifel Nichlaus placed a $24 per share target on the company.
Jefferies Gaming analyst David Katz placed “Hold” rating on PlayAGS with a $21 price target.
