First-half net profit was down -13% to $368m but Macquarie envisages a path for net profit to exceed $1bn in FY22, supported by gains in market share, both in land-based games and digital.
Land-based casino revenues are generally resilient, the broker points out, and likely to rebound quickly. M&A would also accelerate an earnings recovery and the broker considers Aristocrat Leisure well placed in terms of liquidity.
Outperform rating maintained. Target is reduced to $29.50 from $32.00.
Sector: Consumer Services.
Target price is $29.50.Current Price is $26.29. Difference: $3.21 – (brackets indicate current price is over target). If ALL meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).