Credit Suisse believes the main engine of earnings growth over the next 18 months is likely to be North America’s land-based gaming business. The company’s recurring revenue business may also capture improved yield.
The broker models 2.6% yield growth in 2019. However, Credit Suisse sounds a note of caution in that, in some segments, Aristocrat Leisure is establishing competitive revenue sharing arrangements with casinos to gain market share.
Outperform rating maintained. Target is $30.
Sector: Consumer Services.
Target price is $30.00.Current Price is $24.47. Difference: $5.53 – (brackets indicate current price is over target). If ALL meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
