NEW YORK (TheStreet) -- Shares of International Game Technology (IGT) are down -0.35% to $16.86 in pre-market trading after BMO Capital downgraded the stock to "market perform" from "outperform, but while Goldman Sachs (GS - Get Report) upgraded the company to "neutral" from "sell."
BMO Capital lowered its price target to $17 from $18.25. The firm said GTECH's takeover offer of the global gaming company was a reason for the downgrade, as well as the competitive gaming market.
Meanwhile, analysts at Goldman Sachs raised its price target to $16.50 from $12, citing the merger.
- The gross profit margin for INTL GAME TECHNOLOGY is rather high; currently it is at 63.26%. Regardless of IGT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.03% trails the industry average.
- INTL GAME TECHNOLOGY has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, INTL GAME TECHNOLOGY increased its bottom line by earning $1.02 versus $0.87 in the prior year. This year, the market expects earnings to be in line with last year ($1.02 versus $1.02).
- Currently the debt-to-equity ratio of 1.98 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, IGT has a quick ratio of 0.69, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 67.0% when compared to the same quarter one year ago, falling from $78.20 million to $25.80 million.
- You can view the full analysis from the report here: IGT Ratings Report