Accel Entertainment (ACEL) has received a new Hold rating, initiated by Truist Financial analyst, Barry Jonas.
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Barry Jonas has given his Hold rating due to a combination of factors influencing Accel Entertainment’s current and future performance. The company, being the largest public route gaming operator, is expected to grow modestly compared to other land-based operators. However, the growth in Illinois, which constitutes a significant portion of ACEL’s revenue, is slowing down. Additionally, the limited float of the company’s stock restricts investors from taking substantial ownership, which impacts its market appeal.
Despite these challenges, ACEL has a strong balance sheet and potential for growth through mergers and acquisitions, especially if new markets legalize video gaming terminals (VGTs). The company could benefit from rising state budget deficits that might drive VGT legalization. However, the potential shift towards online gaming and the lack of comparable public trading companies pose risks. The valuation of ACEL is compelling, but without clear catalysts for growth, the stock remains in a Hold position.
In another report released on December 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.50 price target.