Goldman Upgrades WMS to 'Market Perform'

Analyst Steven Kent raised his rating partly on news that the Mississippi gaming authority has approved a new casino game system

Goldman Sachs upgraded WMS Industries (WMS ) to market perform from market underperform.

Analyst Steven Kent says since May 1, the stock has fallen more than 30%, vs. the S&P 500's 18% drop. He says he had based his sell assessment on the belief that the company's software problems would keep it from growing earnings. He upgraded now because: 1) the stock has fallen; 2) recent channel checks indicate some managers are becoming more receptive to the company's products; 3) the Mississippi gaming authority has approved a new WMS system; 4) he suspects WMS will have good news when it posts fourth-quarter earnings per share on August 14.

He also notes the company will be introducing new games in September. He has a $0.25 fiscal 2002 (June) earnings per share target and $0.07 for fiscal 2003.

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