ALL – UBS rates the stock as Buy

Aristocrat Leisure’s pre-release of the first half result beat expectations with a stronger performance in the US and Australasian land-based businesses.

The outright replacement market is still down -40-45% so UBS suggests commentary regarding increasing share should be taken positively and indicates a strong product portfolio.

UBS is increasingly confident around its forecasts for a $1.1bn for profit in FY22. Despite the disruptions in the US, the broker estimates that around 90% of participation machines are switched on. Buy rating retained. Target is raised to $42.50 from $35.50.

Sector: Consumer Services.

 

Target price is $42.50.Current Price is $38.92. Difference: $3.58 – (brackets indicate current price is over target). If ALL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →