Despite Positive Results, Nomura Skeptical of International Game Tech (IGT)

Nomura Securities maintained a Neutral rating on International Game Tech (NYSE: IGT) and raised its price target to $15.00 (from $14.00). International Gaming Tech reported Q4 earnings that topped estimated, and guided above the street.

Commenting on the results, which include a break-out in revs and gross margin, analyst Harry C. Curtis said, "At first blush, those results look impressive, but we est. the segment was a flat to minor drag on FY2012 EPS given the significant
fixed costs associated."

Curtis made noted of a lake of significant growth in daily active users and monthly active users and is concerned that the social gaming business could be a "fad", as he remains skeptical of the growth potential of this fledgling industry.

For an analyst ratings summary and ratings history on International Game Tech click here. For more ratings news on International Game Tech click here.

Shares of International Game Tech closed at $12.83 yesterday.

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