Industrials
Analyst: Scientific Games Pact May Ease Worries
The Associated Press
05/14/09 - 10:23 AM EDT
NEW YORK (AP) Scientific Games Corp.'s new lottery contract from Massachusetts should help ease some investor concern about competition facing the casino equipment maker, an analyst said Thursday.
Late Wednesday, the Massachusetts State Lottery said it chose Scientific Games as its primary instant tickets vendor. The pact is anticipated to bring in about $12 million in annual revenue for the New York-based company.
JPMorgan's Carlo Santarelli said in a client note that Scientific Games' new pact did not come as a surprise, but he still views it as a positive for the company.
Santarelli reiterated a "Neutral" rating, but said that any further pullbacks in the stock could provide "reasonable entry points."
The contract, which has a three-year base with two one-year options, is targeted to start in July.
Shares of Scientific Games rose 20 cents to $17.28 in morning trading.