Markets & Finance

Banc of America Hikes WMS Industries to Buy

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.

China's Killer Profits

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

blog comments powered by Disqus