The Aristocrat Leisure Limited (ASX: ALL) share price has managed to avoid the market selloff on Friday.
In afternoon trade, the gaming technology companyâs shares are up 0.5% to $34.39.
Why is the Aristocrat share price pushing higher?
Investors have been bidding the Aristocrat share price higher today after the company was the subject of a couple of bullish broker notes.
One of those notes came out of Morgan Stanley and saw its analysts put an overweight rating and $45.00 price target on the company’s shares.
Based on the current Aristocrat share price, this implies potential upside of 31% for investors over the next 12 months.
The broker sees a big opportunity for the company in the i-gaming market and believes it has the balance sheet strength for major M&A or capital management activities.
Who else is bullish?
Another bullish broker note came out of Goldman Sachs this morning.
According to the note, the broker has retained its buy rating and $43.00 price target on Aristocratâs shares. This implies potential upside of 25% for investors.
Its analysts note that the companyâs digital business is outperforming the market despite recent weakness. This has led to the broker revising “group earnings by +2.3% and +0.4% in FY22/23e.”
Outside this, Goldman continues to see plenty of value in the Aristocrat share price thanks to its very positive growth outlook. This is underpinned by its development pipeline, the recovery in land-based demand, and its strong balance sheet.
The broker commented:
We maintain our Buy rating on ALL based on the strong D&D commitment and pipeline support for future growth, well diversified digital business, leverage to the rapidly recovering land-based business as well as strength in their balance sheet.
The post Aristocrat share price defies the selloff thanks to bullish brokers appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Friday
- Are these ASX growth shares buys after the market selloff?
- Analysts name 3 ASX growth shares to buy next week
- Top brokers name 3 ASX shares to buy today
- 2 discounted ASX shares I’d buy now and one I wouldn’t touch: expert
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 Scott Phillips.
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