As tensions between the Ukraine and Russia escalate, Credit Suisse assesses Aristocrat Leisure’s exposure to the region and finds it to be minimal given there is no land-based gaming in the region.
The broker estimates the company employs 2,100 staff in the region who mostly work for the Digital division, Pixel United, and notes that six of its 17 digital studios are based in the area, which contributes 2% of Pixel United’s revenue and 1% of group revenue.
Outperform rating and $49 target price are retained.
Sector: Consumer Services.
Target price is $49.00.Current Price is $40.45. Difference: $8.55 – (brackets indicate current price is over target). If ALL meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).