International Game price target lowered to $26 from $30 at Stifel

Stifel analyst Jeffrey Stantial lowered the firm’s price target on International Game to $26 from $30 and keeps a Hold rating on the shares. Despite a 2% Q4 adjusted EBITDA beat, IGT traded lower, which the firm attributes to modest downside to Global Lottery estimates implied by guidance, expectations for upfront payments tied to the Lotto contract process, and continued investor “confusion/frustration” with the taxable structure for the Global Gaming and PlayDigital spinoff. The firm continues to see a compelling long-term thesis for patient investors for a standalone infrastructure-like lottery business, but thinks shares may remain range-bound near-term into deal close, the analyst added.