(IGT article updated with stock prices.)
The news sent shares sinking 3.2% to $19.99 in afternoon trading and dragged down shares of other gaming technology makers. Bally Technologies (BYI) is off 0.4% to $43.90, WMS Industries is falling 0.7% to $40.80 and Suffle Master> (SHFL) is dropping 4.3% to $8.64.
The brokerage firm lowered its rating to neutral from buy and cut its price target to $23 from $26."We are increasingly concerned that regional markets will remain weak, and given that 60% to 65% of IGT's earnings come from gaming operations, this could be a drag on results," analyst Steven Kent wrote in a note. Goldman is also concerned about IGT's comments regarding its "limited visibility" in product replacement cycle. Last week the slot machine maker reported a 20% gain in first-quarter earnings, surpassing Wall Street's estimates. The earning season for casino operators starts next week with Penn National Gaming (PENN), and could give a better picture on how casinos will buy gaming technologies in 2010. -Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV