The brokerage cited the IGT announcement on the same day in connection with its review of strategic alternatives for its global gaming and play digital business “to increase shareholder value.”
In November 2021, IGT said it was considering a separate public listing of the group’s digital and betting businesses as part of its strategic review for future growth. 파칭코
“A ‘unpacked’ IGT should be worth a lot more than a client,” analyst Bain suggested in a note.
“About 70% of IGT EBITDA [earnings before interest, tax, depreciation and amortization] comes from the lottery business,” he said. In general, the value of the lottery is more than 40% higher than the value of IGT’s shares, he added.
IGT shares were up 3.9% for the day at US$31.50 at the close of trading on Thursday.
By comparison, shares of casino equipment and gaming technology provider Light & Wonder Inc were at $66.97 at the end of Thursday’s session.
Mr Bain said the separate public listing of gaming and digital entities “should be traded at an enhanced valuation” compared to IGT’s current share price.
“IGT’s consensus gaming EBITDA growth far exceeds all peers, but IGT trades 13% below the casino supplier peer average,” he said.
If the full sale of IGT Group is pursued, there will be “a relatively limited potential buyer sector,” the brokerage noted.
Nevertheless, the agency took the view that “the potential buyer pool is ‘global’ and extends beyond traditional game providers, including digital pure play.”