scroll

Updated thoughts on Aristocrat Leisure (ALL)

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 17/05/2025

Updated thoughts on Aristocrat Leisure (ALL)

Hi James and Team Can I have your current view on Aristocrat. Today is 13/5/25 - ASX200 to open up 1% Early April I made a choice between buying CAR ($31.50)and ALL($61.50). I went with ALL- while both stocks are up from those levels - Aristocrat is up 9% since purchased and CAR is up by 17%. Today ALL at the moment is $66.99 -3 and CAR is $36.84 +1.52 on a very bullish trading day. I know they are different type of stocks but LNW (light & Wonder) is trading $139 +$7.04 (+5.33%) today. Any reason why Aristocrat is not trading higher on a day like today? regards

Answer

Hi,

The question is based on Tuesday’s price action, with ALL set to report earnings the next day (Wednesday) – keeping people on the sidelines. As it turned out, they reported a sorter result that we discussed on Wednesday and that’s lead to some underperformance versus other growth stocks.

Consensus earnings were pulled back ~3% for FY25 and 26 following the update.
Brokers cut their forecasts, UBS cut their Price Target (PT) 2.8%, to $72.40 while Jefferies’s cut theirs 10% to $72.
No brokers had a PT below $70 while Barrenjoey were at the top end ~$76.
When softer results come through, underperformace is the by-product.

We already hold a 5% position in our Active Growth Portfolio hence have no plans to increase our exposure. While the stocks generally much loved and owned we do expect it to find support into dips.

chart

Aristocrat Leisure Ltd (ALL) Earnings Expectations – Source Bloomberg

LAST UPDATED 15/05/2025 21:18

Latest Reports

Weekend report 17/05/2025

Weekend Q&A: The RBA will be centre stage this week, with a rate cut expected

The ASX 200 ended the week up +1.4 %, taking the month's gains to +2.7%, as the index pushed within striking distance of February's all-time high. The energy and tech sectors drove the gains, both ending the week by more than 5%, while defensive/rate-sensitive stocks dragged the chain, i.e. “risk on” was the order of the day. Out of the mainboard's 11 sectors, only the consumer staples, Utilities, and real estate sectors closed lower. The US-China “Trade Truce” set the platform for a strong start to the week, before the Australian market posted its highest level in three months on Friday after soft US economic data paved the way for interest rate cuts in Australia and the United States. The positive statistics are continuing to line up:

Afternoon report 16/05/2025

The Match Out: ASX books another strong week, now up 16% from the lows

SPI Futures were uber bullish overnight up nearly 100pts, outpacing gains in other markets and that drove a bump on open for stocks, however, it didn’t last with the main board giving back the lion’s share of gains as the day progressed, ultimately trading more than 50pts off the early highs – a sign of exhaustion in the short term after a great rally in stocks.