What happened Shares of casino fintech company Everi Holdings (NYSE: EVRI) jumped as much as 27.5% on Friday after the stock got a big upgrade from an analyst. At 1:40 p.m. EDT shares were up 24.1% and holding very strong gains. So what Analyst David Bain from Roth Capital was the one who caused shares of Everi to jump today when he put a buy rating and a $17 price target on the stock. Based on his estimates for calendar year 2022, he believes the average gaming supplier enterprise value-to-EBITDA multiple is 7.3, which would put shares at $11.50 apiece. He also thinks the company deserves a premium, which gets him to $17 per share. Image source: Getty Images. That's a pretty significant upgrade: Everi stock closed yesterday at $4.66 per share. So the price target is nearly 4 times the trading price, a big jump even for the best growth stocks. Now what EBITDA might be a commonly used metric in the gambling industry, but I'm not sure it's a good metric for Everi. The company makes kiosks and game cabinets that clearly have a useful life that's much shorter than a casino or the land a casino sits on. And the difference between the company's $253.2 million in adjusted EBITDA in 2019 and its $16.5 million in net income is driven by the depreciation being pulled out from EBITDA. There's a reason companies need to depreciate assets with a limited life. It's a very real cost that I think investors are overlooking in Everi's case. 10 stocks we like better than Everi Holdings Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Everi Holdings Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source