- Roth Capital keeps a Buy rating on PlayAGS (AGS -13.3%) after the company topped Q4 EBITDA estimates and issued reassuring guidance.
- Amid all the sector anxiety over coronavirus, analyst David Bain notes PlayAGS could be in decent shape.
- "AGS stated it has not seen any variance in play levels or purchasing delays due to COVID-19 and its supply chain is intact. We note that while casinos are communal environments, AGS’ revenue is mostly derived from hyper-local facilities. One could argue that patrons will stay close to home (travel less, etc.) until there is additional virus stability, benefiting play levels - or at least offsetting some of the disruption that could occur should virus concerns augment," he advises.
- The casino/leisure sector is down sharply across the board today on coronavirus anxiety.
- Roth assigns a 12-month price target of $22 to AGS vs. the average sell-side PT of $17.38 and the current price of $7.07.
- Previously: PlayAGS EPS beats by $0.01, misses on revenue (March 4)