Aristocrat Leisure: We’ve been expecting you

About the author:

Author name:

By Alexander Mees

Job title:

Co-Head of Research and Senior Analyst

Date posted:

16 May 2023, 7:30 AM

Sectors Covered:

Gaming and Retail

• We have increased our EPSA estimates by 9% in FY25 to incorporate the expected contribution of NASDAQ-listed NeoGames (NGMS), the proposed acquisition of which was announced by Aristocrat Leisure (ASX:ALL) today.
• ALL has paid up to get its hands on NGMS, offering a premium of 104% to the 3- month volume-weighted average price. We had, however, been expecting it to pursue a significant acquisition in the rapidly-growing online real money gaming (RMG) industry and NGMS brings with it a world-class technology platform that is a worthy prize.
• We reiterate our ADD rating and increase our target price to (login to view).

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