What happened 

Shares of Scientific Games (NASDAQ:SGMS) had another great day on Tuesday, climbing as much as 15.5% in trading before closing up 14.7% for the day. This follows a 39.3% gain in shares on Monday

So what

Yesterday's move was the result of a new investor group, led by Caledonia, taking a large stake in the company, and today analysts weighed in. Union Gaming kept a buy rating on the stock and raised its price target from $27 to $38 per share. Jefferies and Stifel also had positive comments about investment. 

Slot machines on a casino floor

Image source: Getty Images.

Union Gaming thinks changes to the board of directors and the investor base give the company a better ability to execute on its long-term strategy. Caledonia's track record of creating value in the gambling space is also giving the analysts confidence. 

Now what

While yesterday's news was a more fundamental shift in the investment thesis, today's isn't as notable in the long term. Analyst upgrades and downgrades can move stocks in the short term, but typically don't last long term. What investors should look out for is if Caledonia's investment can lead to changes in Scientific Games' performance in areas like mobile and digital gaming. If it can, this will be a home run stock, but if it doesn't, the company's recent pop won't last long. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.