PlayAGS (NYSE: AGS) stock is rebounding as the broader market recover from the pandemic shocks. As of Tuesday’s late trading, PlayAGS stock was up by 12 percent above the average volume.
The bullish raise of casino technology gaming provider diminished the past weeks’ loss by almost 20 percent. As unpromising the figures appear, B. Riley analyst David Bain is sticking by the stock and believes they have a potential of more than doubling from the current levels.
On Monday, David Bain said that PalyAGS stock could reach $21 in the next 12 months. The analysts also noted that PlayAGS stock is greatly discounted relative to its peer gaming groups.
“The 35 percent or 41 percent valuation discount is despite continuing structural and geographic advantages versus most peers, newly minted traction in the $1.5 billion premium recurring slot segment, and new title strength in the for sale segment.”
Though PlayAGS gaming is a small trading name in the US, it still has some hidden potential for investors. The company market value stands at $305.71 million, which is quite a small-cap.
PlayAGS has been one of the best performing gaming equities in 2021, and there are good reasons to believe that the electronic gaming machines provider can break from the recent funk.
Bain cites some tribal jurisdictional gross gaming revenue (GGR) report and other data that indicates that PlayAGS 80 percent recurring revenue model is winning and accelerating an upside.
“Contacts also cite continued premium game installations, as well as new title strength, in the for sale category directly ahead of an acceleration in industry slot-buying from budgets.”
PlayAGS also offer investors some flexibility against negative sentiments emerging from delta variants. This is because most of the company’s customers are located in states unlikely to impose shutdowns.