Aristocrat share price higher on bullish broker note

a group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottls in front of them cheering on one of their group as he looks excitedly at his phone as though he's just had some success on an online gambling app.

a group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottls in front of them cheering on one of their group as he looks excitedly at his phone as though he's just had some success on an online gambling app.

The Aristocrat Leisure Limited (ASX: ALL) share price is pushing higher on Thursday.

In morning trade, the gaming technology company’s shares are up 1% to $32.32.

Why is the Aristocrat share price pushing higher?

The catalyst for the rise in the Aristocrat share price appears to have been a broker note out of Goldman Sachs.

According to the note, the broker has reinstated coverage on the company with a buy and $43.00 price target.

Based on the current Aristocrat share price, this implies potential upside of 33% for investors over the next 12 months.

What did the broker say?

Goldman is feeling very positive on the Aristocrat share price for a number of reasons. This includes its current valuation and very positive growth outlook.

The broker commented: “At current levels, we see plenty of valuation support for ALL, both in absolute and relative terms noting, especially in terms of the double-digit forecast 3yr CAGR EBIT growth out to FY24E which is ahead of the market.”

Goldman expects this strong growth to be underpinned by “its relentless commitment to D&D [design and development] particularly during the pandemic which will deliver medium-term tailwinds” and its “well diversified digital business positioned for longer term structural growth.”

In addition, the broker highlights the company’s huge (and important) opportunity in real money gaming (RMG).

It explained: “We see ALL’s strategic shift into RMG as critical over the medium to longer term given the significant runway of growth and addressable market. We see it as an opportunity to grow overall earnings, with clear synergy benefits from the overlapping content, but more importantly view it as a way to defend against potential cannibalization of its North American land based business.”

All in all, this could make the Aristocrat share price one to consider at current levels.

The post Aristocrat share price higher on bullish broker note appeared first on The Motley Fool Australia.

Should you invest $1,000 in Aristocrat right now?

Before you consider Aristocrat, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aristocrat wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/wpNO9RK

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s