On Friday, Truist Securities revised its stance on Everi Holdings Inc. (NYSE:EVRI), downgrading the stock from Buy to Hold and adjusting the price target to $13 from the previous $14.
The adjustment comes as the analyst expressed a positive outlook on the long-term prospects of the merger between International Game Technology (NYSE:IGT) and Everi Holdings, but also acknowledged the short-term execution risks involved.
Truist Securities noted that while the merger could offer benefits in the future, the completion of the deal is almost a year away. This anticipated delay is expected to result in Everi's shares being range-bound as investors look for clarity regarding the integration process and potential synergies.
Additionally, there is uncertainty surrounding the renewal of the Italian Lotto, which adds another layer of complexity to the company's near-term outlook.
The firm also revised its estimates for Everi's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the years 2024 and 2025, reducing them by 2% and 4%, respectively. This was based on the company's earnings and guidance.
Alongside the downgrade of Everi's stock, the price targets for both Everi and IGT were lowered, with IGT's new target set at $30, down from $32.
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