Aristocrat Leisure’s decision to extend its on-market share buyback program by $750 million has been met with positive reactions from analysts. Citi has revised its earnings per share (EPS) forecasts upwards, signalling confidence in the company’s financial position. Aristocrat Leisure is a global gaming content and technology company and a top-20 ASX-listed company. It has a portfolio of brands including Aristocrat Gaming, Pixel United and Anaxi.
According to Citi analyst Adrian Lemme, the expanded buyback, which supplements the existing program with approximately $50 million remaining, exceeded expectations. This move has led to EPS upgrades of up to 1 per cent across fiscal years 2026 to 2028. The buyback is anticipated to continue on-market for 12 months, concluding in March 2027.
Citi has maintained its ‘buy’ rating for Aristocrat Leisure, setting a share price target of $71. This target suggests a potential total return of 27 per cent, inclusive of dividends. Citi views the buyback as a capital-efficient strategy, given Aristocrat’s robust cash generation capabilities.
While Citi has not altered its sales or EBIT forecasts, the reduced share count resulting from the buyback is expected to provide incremental earnings leverage over the medium term. The analysts see Aristocrat’s financial strategy as a positive sign for investors.
