AINSWORTH GAME TECHNOLOGY LIMITED (AGI)
Share Price Analysis and Chart

10/05/2024

1

Outperform

$1.10

18.28%

Ainsworth Game Technology expects to report $13-15m in underlying profit in the first half, which is around -40% below a year ago and represents material degradation sequentially, Macquarie notes.

The main impacts relate to product timing delays with regulatory approvals along with lower outright sales into Latin America.

The delays with regulatory approvals is disappointing, and while a timing issue, it does potentially delay product sales, which may have resulted from the recent improved product performance, the broker suggests.

Ainsworth has also put the strategic review on hold to better focus on the core business, which management suggests is not performing at a level reflective of investments undertaken. Downgrade to Neutral from Outperform, target falls to $1.10 from $1.45.

FORECAST
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of 7.00 cents.
Macquarie forecasts a full year FY25 dividend of 5.00 cents and EPS of 9.40 cents.