Eurobank Equities lowers Intralot rating

Eurobank Equities has downgraded its rating on Intralot, establishing share price at a new price target of EUR2.0.

Intralot, the Greek gaming giants which owns Malta-based subsidiary Maltco Lotteries , was last year awarded with a renewed 10 year concession by the Malta Lotteries and Gaming Authority after outbidding US rivals GTech of Lottomatica.

Eurobank Equities suggested that after the rally in the shares since the start of 2012, Intralot's risk-reward profile is balanced.

Given stagnant trading in several key markets, demanding debt maturity profile in the next two years, increasing minority leakage due to rising significance of contracts such as Malta, Turkey, Argentina, Jamaica, and uncertainty regarding the outcome of OPAP's privatisation (in which Intralot may participate as a minority member of a consortium), Eurobank Equities adopts a more cautious stance, at least until the first inflexion point for the investment case, namely the privatisation of OPAP,  Greece's biggest listed gambling company, which

Intralot has been its technological support provider for the last 12 years.