“Aristocrat Leisure (ALL) reported result last week,” Raymond said.
“Financial year 2023 earnings were broadly in line with consensus expectations.
“Revenue was slightly above forecast, but this was partly offset by the effect of increased design and development expenditure.
“Financial year 2023 net profit after tax and amortisation (NPATA) was up 13% in constant currency terms to $1,327 million, 3.9% above our forecast.
“Growth moderated in financial year 2023, and we expect further moderation in next financial year, as trading conditions normalise after the post-lockdown surge in demand for land-based gaming.
“We think the worst is over for Pixel United though and expect growth to turn positive in the years ahead.
“Financial year 2024F NPATA is largely unchanged at $1,382 million.
“Our forecast implies constant currency growth of 1.6%.
“We retain an Add rating.
“Our target price comes down by 2% from $46 to $45, mainly due to the use of a higher weighted-average cost of capital (WACC).
“Aristocrat Leisure (ALL) has significant long-term growth prospects, a high return on investment capital (ROIC) business model and a strong balance sheet,” Raymond said
Aristocrat Leisure (ALL) – last 12 months
Source: nabtrade
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