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).
