Vol. 7 • No. 23 • June 22, 2009 - Print This Issue
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Vol. 7 • No. 23 • June 22, 2009, GOODS & SERVICES
IGT Server-Based Product Impresses Wall Street
The implementation of “sbX Tier One” and other server-based gaming efforts has drawn a favorable review on the company’s future from one Wall Street gaming analyst.
Leading slot manufacturer International Game Technology, which has struggled to maintain market share and cut costs during the recession, had good news to report following its first introductions of server-based gaming products.
IGT has been developing applications for a networked floor for MGM’s CityCenter project, which will open next year with a completely server-ready slot floor. In the meantime, IGT has sold several installations of “sbX Tier One,” a small-scale server-based system that allows casinos to test networked applications without the cost of converting an entire floor.
Goldman Sachs analyst Steven Kent last week said the server-based efforts have put the company on a solid path toward earnings growth.
In a client note, Kent praised former CEO TJ Matthews’ focus on software development as opposed to box sales, and new chief executive Patti Hart’s continuation of server-based gaming emphasis. He also cited cost control efforts and product development progress as positives for the company.
“We expect Ms. Hart’s focus to be on rationalizing these previously started programs and determining what is working and what is not,” Kent wrote.
Kent gave IGT a “Buy” rating, setting a $20 price target. Shares of the manufacturer were up 2.7 percent, to $16.73, the day of the note.
IGT has been developing applications for a networked floor for MGM’s CityCenter project, which will open next year with a completely server-ready slot floor. In the meantime, IGT has sold several installations of “sbX Tier One,” a small-scale server-based system that allows casinos to test networked applications without the cost of converting an entire floor.
Goldman Sachs analyst Steven Kent last week said the server-based efforts have put the company on a solid path toward earnings growth.
In a client note, Kent praised former CEO TJ Matthews’ focus on software development as opposed to box sales, and new chief executive Patti Hart’s continuation of server-based gaming emphasis. He also cited cost control efforts and product development progress as positives for the company.
“We expect Ms. Hart’s focus to be on rationalizing these previously started programs and determining what is working and what is not,” Kent wrote.
Kent gave IGT a “Buy” rating, setting a $20 price target. Shares of the manufacturer were up 2.7 percent, to $16.73, the day of the note.
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