Analyst lowers rating

Wednesday, Jan. 8, 2003 | 10:59 a.m.

CIBC World Markets analyst William Schmitt has lowered the rating on shares of slot machine manufacturer Alliance Gaming Corp. from "Sector Performer" to "Sector Underperformer."

The company has strong growth prospects and remains a "solid long-term investment," Schmitt said. "However, on a 12-18 month time horizon, we believe that our forecast fully reflects the company's prospects."

Schmitt's earnings estimates and target prices for the Las Vegas-based company remained unchanged.

CIBC World Markets maintains a conservative outlook on the casino sector, driven by waning consumer confidence and a softening economy, he said.

"We believe that given consumers' outlook, the likelihood of downside revisions to our estimates has increased over the recent past."

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