Aristocrat Leisure Ltd

ALL: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$97.00	Rrgnjw	Qcflshnw

Aristocrat's Gaming Business Drives Strong Fiscal-Year 2022

Angus Hewitt

Nov 16, 2022

We maintain our AUD 43 fair value estimate for shares in Aristocrat following fiscal-year 2022 earnings. Underlying net profit lifted 27% to AUD 1.1 billion—about 5% above our prior forecast. The strength of the land-based gaming business in North America stands out with earnings roaring back following two years of COVID-19 disruptions. At current prices, Aristocrat screens as a good value. We think the market is too focused on slowing tailwinds in Aristocrat's digital businesses, overlooking the firm's dominance in land-based gaming that underpins its narrow economic moat.

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