NEW YORK ( TheStreet) -- Casino stocks ended Monday in the red, with slot-machine makers taking the biggest hits.
Bally Technologies (BYI) tumbled 6.6% to close at $35.74, after the rating on the stock was cut to neutral from buy by Janney Capital Markets.
The firm said Bally may be forced to slash its prices due to increasing competition. Analyst Brian McGill also lowered his price target to $37 from $43.30.
"We do not expect to see significant share gains, even with somewhat better games on the new cabinet and operating system," he wrote.Bally also weighed down shares of WMS Industries (WMS), which tumbled 7.6% to $36.38, and International Game Technology (IGT), which ended the day down 2.8% to $16.23. Casino operators also struggled. Boyd Gaming (BYD) saw the biggest decline, falling 4.6% to $9.66. Last week, the regional player reported a wider loss in its fourth quarter, hurt by higher costs and expenses. Las Vegas Sands (LVS) declined 3.3% to $42.19, MGM Resorts (MGM) dropped 2.3% to $13.44 and Wynn Resorts (WYNN) slipped 3.4% to close Monday at $126.40. Have questions or comments about casino stocks? Drop an e-mail or Tweet http://twitter.com/jpoggi. --Written by Jeanine Poggi in New York.
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