{"id":241915,"date":"2022-11-09T10:36:34","date_gmt":"2022-11-09T16:36:34","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=241915"},"modified":"2022-11-09T15:38:37","modified_gmt":"2022-11-09T21:38:37","slug":"playags-stock-offers-considerable-upside-potential-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/","title":{"rendered":"PlayAGS Poised to Gain Slot Machine Market Share"},"content":{"rendered":"

Gaming device manufacturer PlayAGS (NYSE: AGS) reported third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) that beat Wall Street estimates. And, while the stock is sliding on Wednesday, some analysts remain upbeat on the shares.<\/p>\n

\"PlayAGS\"
A slide from a PlayAGS investor presentation. Stifel analyst Jeffrey Stantial is bullish on the stock. (Image: PlayAGS)<\/figcaption><\/figure>\n

In a note to clients, Stifel analyst Jeffrey Stantial reiterated a \u201cbuy\u201d rating on PlayAGS, with an $11 price target, implying an upside of 57%<\/a> from the Tuesday close. He sees several possible catalysts for the stock, including the ongoing slot machine upgrade cycle.<\/p>\n

Results and commentary suggest continued return on management’s re-tooling of the slot business, with quarterly growth in premium leased units accelerating and slot shipments outpacing consensus,\u201d<\/strong> noted Stantial.<\/p><\/blockquote>\n

Casino visitation trends are strong across the US, compelling operators to extend the slot upgrade cycle owing to the high margins offered by gaming machines. Specific to AGS, the company is adding market share<\/a> and derives 70% of its sales from recurring revenue streams.<\/p>\n

PlayAGS Shares Have Big Potential<\/h2>\n

Entering Wednesday, PlayAGS stock was higher by 2.21% year-to-date \u2013 good for one of the best showings among all gaming equities.<\/p>\n

\n

Despite the trials and tribulations endured by the broader small-cap universe and the stock\u2019s September slump, which was largely attributable to news that prospective suitor Inspired Entertainment (NASDAQ: INSE) halted takeover talks it had previously commenced with the Las Vegas-based company.<\/p>\n<\/div>\n

In August, Inspired Entertainment offered $10 a share in cash for AGS<\/a>, valuing the target at $370 million. That\u2019s well above AGS\u2019s current market capitalization of $251.23 million. While a scuttled takeover usually weighs on shares of the stock — and that happened with PlayAGS — there are signs of momentum in the company\u2019s business.<\/p>\n

\u201cCommentary at this year’s G2E, both from management and customers, suggests momentum in game ops (in particular premium) should persist into 2023 with solid content shown for the Orion Curve Premium and expansion into high-denom (a key function of T12M R&D investments) broadening the product portfolio,\u201d added Stantial.<\/p>\n

PlayAGS Offering Compelling Valuation<\/h2>\n

Small-cap stocks, regardless of sector, usually trade at premium valuations relative to large-cap peers. That\u2019s simply the price of admission for accessing the superior growth rates offered by smaller companies. However, small-caps are trading at noticeable discounts this year, and PlayAGS is part of that trend.<\/p>\n

Shares have outperformed the group since Q2 earnings, though even still trading at a wide discount to peers (~5.25x 2023E Adj. EBITDA),\u201d noted Stantial. \u201cValuation remains solidly dislocated from recent performance, and forecasted market share trajectory into 2023 (based on our anecdotal checks), and hence we reiterate \u2018buy.\u2019\u201d<\/p><\/blockquote>\n

Additionally, there\u2019s speculation that PlayAGS remains a compelling acquisition and that it could be holding undisclosed talks with other suitors. But that hasn\u2019t been confirmed as of yet.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gaming device manufacturer PlayAGS (NYSE: AGS) reported third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) that beat Wall Street estimates. And, while the stock is sliding on Wednesday, some analysts remain upbeat on the shares. In a note to clients, Stifel analyst Jeffrey Stantial reiterated a \u201cbuy\u201d rating on PlayAGS, with an $11 price […]<\/p>\n","protected":false},"author":46,"featured_media":241917,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,69293],"tags":[81903,81890],"acf":[],"yoast_head":"\nPlayAGS Stock Offers Considerable Upside Potential, Says Analyst<\/title>\n<meta name=\"description\" content=\"PlayAGS shares could rally as the company gains more high-end slot machine market share.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PlayAGS Stock Offers Considerable Upside Potential, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"PlayAGS shares could rally as the company gains more high-end slot machine market share.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-09T16:36:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-09T21:38:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/\",\"name\":\"PlayAGS Stock Offers Considerable Upside Potential, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg\",\"datePublished\":\"2022-11-09T16:36:34+00:00\",\"dateModified\":\"2022-11-09T21:38:37+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"PlayAGS shares could rally as the company gains more high-end slot machine market share.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg\",\"width\":1920,\"height\":1080,\"caption\":\"A slide from a PlayAGS investor presentation. Emmett Investment Management is opposing Brightstar Capital's takeover offer for the slot machine maker. (Image: PlayAGS)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"PlayAGS Poised to Gain Slot Machine Market Share\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"PlayAGS Stock Offers Considerable Upside Potential, Says Analyst","description":"PlayAGS shares could rally as the company gains more high-end slot machine market share.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/","og_locale":"en_US","og_type":"article","og_title":"PlayAGS Stock Offers Considerable Upside Potential, Says Analyst","og_description":"PlayAGS shares could rally as the company gains more high-end slot machine market share.","og_url":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-11-09T16:36:34+00:00","article_modified_time":"2022-11-09T21:38:37+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/","url":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/","name":"PlayAGS Stock Offers Considerable Upside Potential, Says Analyst","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg","datePublished":"2022-11-09T16:36:34+00:00","dateModified":"2022-11-09T21:38:37+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"PlayAGS shares could rally as the company gains more high-end slot machine market share.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/AGS.jpg","width":1920,"height":1080,"caption":"A slide from a PlayAGS investor presentation. Emmett Investment Management is opposing Brightstar Capital's takeover offer for the slot machine maker. (Image: PlayAGS)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/playags-stock-offers-considerable-upside-potential-says-analyst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"PlayAGS Poised to Gain Slot Machine Market Share"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/241915"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=241915"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/241915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/241917"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=241915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=241915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=241915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}