International Game upgraded to Buy from Hold at Stifel

Stifel analyst Jeffrey Stantial upgraded International Game to Buy from Hold with a price target of $26, up from $24. Despite the company’s favorable update on the Lotto tender and “healthy” lottery trends reported at Q1, the shares continue to trade lower, which primarily reflects the mechanical overhang ahead of the Gaming & Digital spinoff, the analyst tells investors in a research note. The firm says that while risk remains that IGT proves “dead money” ahead of the close, it would rather risk being too early than late. The Italy Lotto contract is “substantially de-risked,” helping catalyze the lottery re-rate thesis, contends Stifel.