Everi Stock has ingredients for more benefits thanks to Fintech Biz
Posted: May 30, 2021 at 3:42 a.m.
Last updated on: May 30, 2021, 4:28 a.m.
Quietly, Everi Holdings (NYSE: EVRI) stock is one of the top performing gaming stocks this year. Even with a gain of 50.11% in 2021, the slot machine maker and supplier Fintech offers a lot more benefits, according to an analyst.
In a recent note to clients, B. Riley’s David Bain not only reiterates a “buy” note on Everi, he raises his expected second quarter earnings before interest, taxes, depreciation and amortization (EBITDA) on the name, while increasing its target price to $ 33. This implies an increase of more than 59% from the May 28 close. The stock stood just 2.49% below its all-time high last Friday and jumped 10.21% last week.
“We note that checks with tribal contacts point to a potential increase in slot machine purchases, particularly at the end of the year (many tribes take place at the end of October, when the niche managers will receive a new annual budget), ”the analyst said. “The checks also cite factors such as vaccine deployment, entertainment near home, and release measures that provide continuous / lasting playing strength.”
Tribal customers make up a significant percentage of Everi’s revenue. But the Las Vegas-based company also does business with some of the biggest commercial game operators. For example, Caesars Palace on the Strip is testing Everi’s Jackpot Xpress – a system used to track slot machine wins and make submitting that data to the IRS more efficient.
Everi Stock still a fantastic FinTech story
The company’s fintech offerings are an important part of Everi’s investment thesis, and this is underpinned by the move to cashless gambling in casinos across the country – accelerated by the coronavirus pandemic.
As B. Riley Bain points out, Everi will be the FinTech supplier for Resorts World Las Vegas, which is scheduled to open on June 24. had an established relationship with Eldorado Resorts, while the “old Caesars” had multiple Fintech relationships. Eldorado’s management runs Caesars Entertainment.
These are not the only reasons why Everi’s stock could offer more benefits. In fact, the catalysts could be waiting behind the scenes.
“We believe EVRI is continuing its late stage discussions with several multi-property, multi-jurisdictional operators on digital wallet facilities,” Bain said.
Florida state of mind
Through the Hard Rock Casino in Indiana, Everi maintains a relationship with the Seminole Tribe – one of the largest tribal operators in the United States. Bain, analyst for B. Riley, says the relationship could expand dramatically if sports betting takes off in Florida.
“The Seminoles have embraced EVRI’s digital wallet. If the compact structure is ultimately approved, we believe any “skin” or online sports betting operator in Florida would offer the Seminole branded wallet (backboned by EVRI Fintech) as a payment option, ”the analyst said. .
Recently, lawmakers in Florida passed a massive revenue sharing agreement with tribal casinos, allowing regulated sports betting. Under the terms of the agreement, the Seminoles have exclusivity on mobile sports betting.
However, challenges persist as outside groups claim that the Florida state constitution requires voters to approve any form of gambling expansion, including sports betting.