Markets & Finance

Merrill Reiterates Buy on GTECH

Merrill Lynch reiterated a buy recommendation on GTECH Holdings (GTK).

Analyst David Anders believes the deal to acquire Atronic (global supplier of gaming devices) will position GTECH to benefit from the convergence of gaming and the lottery. He notes management did what they said they would last November at their analyst meeting, which was to become a significant player in the gaming device market, most likely through acquisitions.

By concentrating on the gaming device market outside the U.S., Anders thinks GTECH can grow and expand its device divisions before aggressively moving into the U.S. to compete with International Gaming Technology in the casino environment.

Anders sees $1.53 fiscal 2005 (ending February) earnings per share and $1.58 fiscal 2006. He has a $30 price target.

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