Aristocrat Leisure has announced the cash acquisition of Playtech for $5bn, allowing Aristocrat Leisure to fill a strategic gap and enter the US iGaming space.
Credit Suisse notes while the acquisition can add significant value, there is execution risk over the next three years and awaits further details on Aristocrat Leisure’s plan.
The Outperform rating and target price of $5.30 are retained.
Sector: Consumer Services.
Target price is $50.30.Current Price is $45.79. Difference: $4.51 – (brackets indicate current price is over target). If ALL meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).