Stifel maintains Hold rating on Bally’s stock amid Intralot deal

Investing.com - Stifel maintained its Hold rating and $12.00 price target on Bally’s Corp (NYSE:BALY), which currently trades at $11.11, following the company’s announcement of a definitive agreement with Intralot. According to InvestingPro data, the company operates with a significant debt burden, with a debt-to-equity ratio of 7.0x.

On Tuesday, Bally’s announced that Intralot would acquire its International Interactive business in a cash and share transaction valuing the business at €2.7 billion, approximately 10 times the 2025 estimated adjusted EBITDA.

The deal structure includes €1.530 billion in cash payment from Intralot and €1.136 billion in newly issued Intralot (ATSE:INLOT) shares, totaling about 874 million shares, which would make Bally’s a majority shareholder in Intralot.

As part of the transaction, current Bally’s CEO Robeson Reeves will transition to become CEO of Intralot, with the deal expected to close in the fourth quarter of 2025.

Stifel analyst Jeffrey Stantial indicated no changes to the firm’s model or $12 target price for Bally’s stock while maintaining its Hold rating as the company planned to discuss the transaction on a conference call.

In other recent news, Bally’s Corporation has announced a significant transaction involving its International Interactive business. Intralot S.A. will acquire this unit for €2.7 billion through a combination of cash and shares. Bally’s will receive €1.53 billion in cash and €1.136 billion in newly issued Intralot shares. The completion of this transaction is anticipated in the fourth quarter of 2025, subject to necessary approvals. Additionally, Bally’s shareholders have approved several key proposals at their annual meeting, including the election of directors and the ratification of Deloitte & Touche LLP as the company’s independent auditor. In another development, Bally’s has committed to investing $187 million in The Star Entertainment Group, an Australian gaming company, to support its turnaround efforts. This investment involves convertible notes and subordinated debt, potentially giving Bally’s a significant stake in The Star. The strategic moves by Bally’s reflect its ongoing efforts to expand and strengthen its position in the gaming industry.

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