International Game Technology: The Jackpot's Smaller--But Still Worth The Gamble

  • IGT's Q1 FY 2025 double-miss and lowered guidance have narrowed upside, but the stock remains undervalued versus peers. Lottery tailwinds, strong iLottery growth, and disciplined debt management support ongoing free cash flow and capital returns. I'm reducing my price target from $25 to $21.50–$22, reflecting a more cautious outlook but still projecting a 27–30% upside.