Thursday, February 22, 2007
Davenport notes that late yesterday speculation emerged that Aristocrat may look to acquire Bally Technologies (NYSE: BYI). Analyst George L Smith III said, "While we typically do not comment on speculation and have no idea if this has any merit, it does draw attention to M&A feasibility in the space and we do think such a combination could make sense on a number of levels. Moreover, we continue to think BYI is a great story takeout aside. We reiterate our Buy rating and $27 target. If nothing else, speculation should help draw more attention to a neglected turnaround story."