Friday - B.Riley has resumed coverage on Everi Holdings (NYSE:EVRI), a gaming and financial technology company, issuing a neutral rating and a price target of $12.00. The firm's analysts highlighted the perceived value in the current stock price and the potential for the shares to increase. They noted, however, that certain structural issues and anticipated lower first-half 2024 key performance indicators (KPIs) might result in the stock price remaining within a certain range for the time being.
The analysis suggests that the stock's outlook could become more favorable as KPIs improve in the second half of 2024. Additionally, the anticipated merger between Everi and International Game Technology (NYSE:IGT) could provide further grounds for a positive stance on the stock. According to the analysts, this merger nearing completion could be a catalyst for a more constructive view on Everi Holdings' shares.
The neutral rating reflects a cautious but not negative perspective on Everi Holdings. The analysts believe that while there are compelling reasons for the stock to appreciate, there are also factors that may temper its short-term performance. The price target of $12.00 implies a level where the analysts believe the stock should be trading, based on their assessment of the company's value and prospects.
Everi Holdings, which operates in the gaming and financial technology sectors, is at a juncture where industry watchers are paying close attention to its performance indicators and strategic moves. The company's progress, especially in relation to the game merger with IGT, is expected to be a significant point of interest for investors and analysts alike.
Investors and market participants will likely monitor Everi Holdings as it navigates through the forecasted lower KPIs in the first half of 2024 and works towards the potential synergies from the merger with IGT. The outcome of these developments could influence the stock's performance and B.Riley's future ratings.
InvestingPro Insights
As Everi Holdings (NYSE:EVRI) stands at a pivotal point with the anticipated merger and a cautious market outlook, certain financial metrics and management strategies can offer a deeper understanding of the company's current standing. According to InvestingPro data, Everi's market capitalization is approximately $791.78 million, with an attractive P/E ratio of 8.43 for the last twelve months as of Q4 2023. This is complemented by a robust gross profit margin of 80.04% during the same period, underlining the company's efficiency in maintaining profitability.
InvestingPro Tips indicate that Everi's management has been proactively buying back shares, a sign of confidence in the company's value. Additionally, a strong free cash flow yield is implied by the valuation, which could be a significant indicator for investors looking for companies with the potential to generate cash. It's worth noting that while analysts have revised their earnings downwards for the upcoming period, they also predict that the company will be profitable this year, having been profitable over the last twelve months.
Investors considering Everi Holdings may want to explore these facets further, especially given the stock's recent volatility and significant price drop over the last six months. For more detailed analysis and additional InvestingPro Tips, visit https://www.investing.com/pro/EVRI. To enhance your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 additional tips listed in InvestingPro, investors can gain a more comprehensive view of Everi's financial health and market position.
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