A recent pullback in International Game Technology's (IGT) share price provides a good buying opportunity for investors, a JPMorgan analyst said Tuesday as he upgraded the slot machine and casino management systems maker.
Joseph Greff raised his rating to "Overweight" from "Neutral."
He wrote in a client note that IGT's stock has dropped about 15 percent since late July. The slight dropoff comes just before a likely increase in domestic replacement orders and rampup in expansion opportunities, which could help boost earnings per share in the next few years, he added.
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"New CEO Patti Hart and her team have done a solid job thus far in strengthening the balance sheet and liquidity, as well as taking out operating expenses," Greff wrote.
He reiterated a $23 price target on shares of the Reno, Nev.-based company.
Shares of IGT gained 70 cents, or 3.8 percent, to $18.95 in morning trading. The stock has traded in a 52-week range of $6.81 to $24.12.
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