Jefferies upgrades jackpot technology company Mikohn Gaming (PGIC) to buy.
Analyst Lawrence Klatzkin says under agreement, Mikohn Gaming will provide Radio Frequency Identification Device (RFID) bet recognition and automated gaming chip tracking. Shuffle Master will provide automated shufflers, card reading shoes, and card and chip sorters. International Game Technology is to provide back-end management systems.
He thinks the alliance is positive for Mikohn Gaming as it boosts his belief the company can better sell, market, distribute, and integrate its products. He thinks the deal gives the company greater pricing power and the ability to sooner reach the goal of 10,000 tables under management within five years.
Klatzkin raises his $15 target to $18.