Citi reinitiates on Aristocrat Leisure, noting the company is a market leader in the social casino segment and offers exposure to continuing mobile game growth. The broker also expects acquisitional growth into the US$15m iGaming market to be likely following legalisation.
According to the broker the core social casino business offers a solid foothold for 16% compound annual earnings growth through to FY24, while hit titles outside of the social casino segment could offer further upside.
The broker reinitiates with a Buy rating and a target price of $44.00.
Sector: Consumer Services.
Target price is $44.00.Current Price is $33.41. Difference: $10.59 – (brackets indicate current price is over target). If ALL meets the Citi target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
