LT Patience to be Rewarded...Plus an ~8% Dividend Yield While You Wait: Resuming Coverage of BRSL With a Buy Rating and $15 PT

研报英文原文证据摘录

LT Patience to be Rewarded...Plus an ~8% Dividend Yield While You Wait: Resuming Coverage of BRSL With a Buy Rating and $15 PT

Deutsche Bank

Research

Rating Company Date

Buy Brightstar Lottery 1 July 2026

Forecast Change

North America PLC

United States

Reuters Bloomberg Exchange Ticker Price at 30 Jun 2026 (USD) 10.80

BRSL.N BRSL US NYS BRSL

Price target 15.00

Consumer

52-week range 18.31 - 10.61

Gaming & Lodging

LT Patience to be Rewarded...Plus an

Valuation & Risks ~8% Dividend Yield While You Wait

Steven Pizzella, CFA

Resuming Coverage of BRSL With a Buy Rating and $15 PT Research Analyst

We are resuming coverage on Brightstar Lottery (BRSL) with a buy rating and $15 +1-212-250-9817

price target representing ~44% total return from current levels. BRSL is a global

"pure-play" lottery company, established in July 2025 following the divestiture of

International Game Technology's (IGT) Global Gaming and PlayDigital businesses.

In a gaming sector that feels increasingly picked over, and shrinking by the day, we

see a differentiated, underappreciated opportunity in BRSL, for long term, value

oriented investors. Given the underperformance in BRSL shares, which have

underperformed our gaming coverage universe by ~2,700 bps in the YTD, we view

this as an attractive entry point. Accordingly, at ~5x our 2027E adjusted EBITDA,

and we believe disconnected from the underlying long term fundamentals, we see

multiple catalysts to drive both earnings growth and multiple expansion including;

1) an underappreciated resilient low beta cash flow stream, 2) upside from iLottery

adoption and legalization, and 3) a strong return of capital profile supported by a

solid balance sheet.

1) An underappreciated resilient low beta cash flow stream