In a note to clients analyst Bill Lerner said the Las Vegas-based company can expect to see successes in systems and game sales in the next cycle in the server-based gambling arena.
Fundamentals are solid and improving, he said. Bally "is picking up market share (especially due to improved video platform) and its growing participation biz," Lerner wrote. The company "continues to have success on the systems front ... while at the same time flowthrough has been quite positive on the margin front."
Additionally, Bally's execution and customer demand for the company's product have both shown strength in a trough environment, he said.
At the height of global expansion cycles -- around 2010 to 2011 -- the company's earnings could reach $2.75 a share, Lerner said. He saw adjusted earnings per share in 2008 of $1.85 and in 2009 of $2.07.
The mean estimate of analysts polled by Thomson Financial is for 2008 earnings of $1.80 a share and 2009 earnings of $2.24 a share.
Bally shares were trading up around 6.5% at $33.88. Brigid Gaffikin bg/vj
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