Banc of America upgraded WMS Industries (WMS
) to buy from neutral, explaining that the video and gaming company's shares look cheap compared to its peers International Game Technology (IGT
) and Alliance Gaming (AGI
Analyst David Vas says WMS' stock has lost ground after it recently reduced guidance and rolled-out new products. Still, Vas thinks the current prices (WMS currently trades at around $27.61 per share) pay investors for such risks. He lowers his $1.00 2006 earnings per share (EPS) estimate to 95 cents, but raises his $1.16 2007 estimate to $1.30. He expects higher WMS casino game unit sales, an improving industry backdrop, product momentum from penny slot machines, and introductions of new recurring revenue games. He raises his $28 stock price target to $31.