Macquarie tinkers with earnings revisions ahead of Aristocrat Leisure’s FY22 first-half result.
The broker notes Aristocrat’s businesses are gaining ground and with $1.3bn (net cash) in the kitty, M&A is on the cards.
Macquarie estimates the company will achieve a compound annual growth rate of 10% in the three years to 2024.
The broker’s $44 target price attributes $40.50 to the underlying business and $3.50 to M&A upside.
Outperform rating retained after the share-price retreat following the Playtech lapse.
Sector: Consumer Services.
Target price is $44.00.Current Price is $31.34. Difference: $12.66 – (brackets indicate current price is over target). If ALL meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).
