NEW YORK (TheStreet) -- Global Cash Access Holdings (GCA) plunged more than 15% on Wednesday after the integrated casino cash solutions provider announced its cash access agreements with Caesars Entertainment Operating Company (CZR) would not be renewed after they expire on March 31.
GCA announced it decided not to renew the agreement because "it was not willing to accept the business and financial terms proposed by Caesars regarding the renewal of these agreements." The agreements covered automated teller machine services, point-of-sale debit services and credit card cash access services and ticket redemption device services.
The company also reaffirmed its adjusted EBIDTA and earnings per share estimates for the fiscal year 2014. GCA previously forecast adjusted EBIDTA in a range of $73 million to $76 million and cash EPS in a range of 82 cents and 87 cents.
Sterne Agee also decreased its target price on GCA to $10.50 from $12.
TheStreet Ratings team rates GLOBAL CASH ACCESS HOLDINGS as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLOBAL CASH ACCESS HOLDINGS (GCA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."