Just got this in an email today ...Friday, 10 May 2024AGI -...

Just got this in an email today ...

Friday, 10 May 2024

AGI - AINSWORTH GAME TECHNOLOGY LIMITED

Macquarie rates AGI as Outperform (1) - Ainsworth Game Technology expects to report $13-15m in underlying profit in the first half, which is around -40% below a year ago and represents material degradation sequentially, Macquarie notes.

The main impacts relate to product timing delays with regulatory approvals along with lower outright sales into Latin America.

The delays with regulatory approvals is disappointing, and while a timing issue, it does potentially delay product sales, which may have resulted from the recent improved product performance, the broker suggests.

Ainsworth has also put the strategic review on hold to better focus on the core business, which management suggests is not performing at a level reflective of investments undertaken. Downgrade to Neutral from Outperform, target falls to $1.10 from $1.45.

Target price is $1.10 Current Price is $0.96 Difference: $0.14 If AGI meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges). The company's fiscal year ends in December.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of 7.00 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.71.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 5.00 cents and EPS of 9.40 cents . At the last closing share price the estimated dividend yield is 5.21%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.21.

Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources