ALL is one stock MM sold too early after we took an overweight stance towards tech in Q4 of 2022 although its advance has been fairly tepid compared to the likes of XRO mentioned previously. Last month ALL proposed the acquisition of NeoGames while expanding its buyback by $500m, the move lifts the company gearing from net cash of A$564m to net debt of A$1.28b. Aristocrat expects the transaction to be earnings accretive in the first full year of ownership (FY25) before any revenue synergies.
- We like the way ALL is evolving but aren’t excited from a valuation perspective above $35.
MM is neutral toward ALL around $38
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