IDEA ALERT: BUYING IGT

02/14/13 10:48AM EST

Keith recently added IGT to our Real-time Alerts at $16.26.

With a cheap valuation of 11x forward, rising ship share, improving visibility and strong EPS growth, and better capital deployment away from acquisitions and towards stock buyback, IGT looks attractive.  IGT is clearly a show me stock and we believe that 2013 will be a year of performance.  Aggressive share repurchases should keep a floor on the stock while shareholder activism and a potentially large order from Oregon represent near-term catalysts.  The Oregon Lottery is considering submitting an RFP to refresh its all the units in its 20,000 VLT market.  We don't believe that order is reflected in the estimates or the stock.

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