Aristocrat Leisure Ltd

ALL: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$76.00	Blckws	Wgmjlkryq

Digital Gaming Stars While Aristocrat's EGM Business Quietly Captures Share

Angus Hewitt

May 24, 2021

We maintain our fair value estimate of AUD 33 per share following the release of narrow moat rated Aristocrat's interim fiscal 2021 results. First-half underlying NPAT of AUD 412 million was pre-released (see our note published May 18, 2021: "Aristocrat's Dominant Position Reaps Rewards as Gaming Recovers"), representing an increase of 12% on the prior corresponding period, or pcp, tracking our full-year forecast of AUD 809 million. While digital gaming growth grabbed headlines, we are also encouraged by the core land-based electronic gaming machine, or EGM, business capturing share in a down market.

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