Goldman Sachs raises its earnings estimates and price target for International Game Technology (IGT).
Analyst Steven Kent says with the closing three days away on the Anchor Gaming (SLOT) acquisition, he raises $3.10 FY 02 (Sept.) EPS estimate to $3.30 and sets $4.00 FY 03. He believes there is at minimum 20% upside to the shares, and therefore raises his $70 price target to $85 to reflect higher EPS estimate and the expectation of continued earnings growth.
He wouldn't be surprised to see the multiple expand further as discussions of new gaming markets turn into reality, pushing the shares even higher. Kent says IGT is on the recommended list and remains his top pick in the gaming sector.