International Game Technology Ordinary Shares IGT 0.25% may no longer be worth the gamble for investors.

Argus analyst John Staszak has downgraded the stock to Hold due to a number of near-term headwinds the firm has identified in the gaming equipment market.

The company’s recent 2017 EBITDA guidance of $1.68 billion–$1.76 billion is confirmation that International Game Technology has a tough road ahead this year, Staszak said in a note.

“IGT shares appear fairly valued at current prices near $23, near the midpoint of their 52-week range of $12–$32,” Staszak said. “Given the company’s current challenges, we see limited upside for the stock over the next 12 months.”

Analyst: MGM A Better Choice

Staszak said there will be relatively few new casino openings in the U.S. market this year, muting demand for gaming equipment. IGT also faces tough Powerball comps — and must make a $195 million payment to the Italian government as part of its deal to operate the country’s national lottery. That payment, Staszak said, is likely to weigh on the company’s free cash flow.

Argus maintains…

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