Top Aristocrat Pick at JP Morgan, with 20% Revenue Growth in Sight

Aristocrat Leisure is the top pick in the Australian game for analysts at JP Morgan, who expect the company to post a nearly 20% increase in revenue this year.

For the financial year, analysts expect revenue of A$5.6 billion, rising to $6.53 billion next year and $7 billion in 2024.

“ALL is a slot machine manufacturer with operations in the ANZ, Americas and International Class III segments, as well as a fast-growing digital division,” the analysts wrote. “ALL has consistently gained market share in North American gaming operations. ALL has significantly increased its digital exposure and continues to develop titles for terrestrial and digital platforms.

“Further digital growth and capital management opportunities are available, coupled with strong management execution, despite a challenging cyclical environment. We believe the risk/reward ratio remains attractive.

Inside JP Morgan Australia’s mid-year outlook series, analysts named Pointsbet Holding their least favorite gambling stock.

The company has a high cash burn rate and is not large enough to gain significant market share in the highly competitive US sports betting market.

Sallie R. Loera