Analyst: Shuffle Master Upbeat On Its Prospects

NEW YORK (AP) — Some of Shuffle Master Inc.'s management indicated during recent meetings that the casino equipment maker may stand to gain from the recession as casino operators looking to preserve cash lean toward leasing options, an analyst said Wednesday.

Stifel Nicolaus & Co.'s Steven Wieczynski said investor meetings with Chief Executive Tim Parrott, acting Chief Financial Officer Coreen Sawdon and investor relations director Julia Boguslawski showed Las Vegas-based Shuffle Master is optimistic about its prospects over the next 24 months.

"While the near-term revenue environment should be strained, Shuffle Master management is starting to witness an increase in spending patterns from gaming operators," Wieczynski wrote in a client note.

The company predicts it will easily achieve double-digit top-line revenue growth beginning in fiscal 2010, he added.

Wieczynski reaffirmed a "Buy" rating and $7 price target.

Shuffle Master's stock shed 22 cents, or 4 percent, to $5.24 in morning trading. Over the past year, the shares have traded in a range of $1.97 to $7.92.