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To own Brightstar Lottery, you have to believe in the durability of its lottery infrastructure franchise and its ability to turn improving, but still loss-making, operations into sustainable profits. The Wisconsin OMNIA win fits that thesis neatly: it reinforces Brightstar’s position as a core systems provider and adds a long-term, contract-backed stream that could support recurring technology revenue, even if the immediate financial impact is modest relative to roughly US$2.49 billion in annual revenue. Near term, the key catalysts still sit around execution on large platform rollouts, stabilizing profitability and the market’s confidence in dividend and buyback support after a weak share price run. The main risks now feel more execution-heavy than demand-driven, with concentration in a finite pool of large lottery contracts still front of mind.
However, concentration in a few big lottery customers is an important risk investors should watch. Brightstar Lottery's share price has been on the slide but might be up to 43% below fair value. Find out if it's a bargain.Explore 2 other fair value estimates on Brightstar Lottery - why the stock might be worth 30% less than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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