In a note Monday, analyst Barry Jonas of Truist Securities published that gaming supplier AGS’s Q4 pre-release earnings supported the “continued growth story” of the company.
The note came after AGS announced that it expects to post an adjusted EBITDA of $41-43 million, 4-9% above the street estimate, and revenues of $92.5-94.5M, +4%-6% above street.
Monday, AGS announced that is exploring a refinancing of its term loan credit facility and voluntarily repay ~$15 million of its ~$549 million outstanding debt. “With credit markets loosening up in recent months, we think a ~25 bps reduction in the cost of debt could be possible,” said Jonas. “Between a successful debt repricing and repayment we could see as much as $2M in interest savings, which could grow our 2024 free cash flow estimates by +9%. ”
AGS’s stock had risen 3.3% as of 12 pm Monday.
Truist Securities left their price target for the AGS stock at $12, a 45% growth from its Friday, January 26th closing of $8.27.
