Aristocrat Leisure Shares Rise Amid Continued Casino Business Outperformance

January 06, 2025 01:15 PM AEDT | By Team Kalkine Media

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Aristocrat Leisure Shares Rise Amid Continued Casino Business Outperformance — Image source: Shutterstock

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Highlights

Stock Performance Surge: Shares of Aristocrat Leisure (ALL.AX) rose by 0.8%, reaching a high of A$69.92, the highest level since early December 2024.

Analysts Highlight Casino Business Strength: Analysts at Jefferies noted the gaming operator's strong performance in its gaming operations, particularly highlighting continued outperformance from the firm's casino business.

Social Casino Market Growth: Aristocrat continues to gain share in the social casino market, growing from 13.8% to 14.7% in 3Q CY24, with analysts predicting further growth following the company's divestment of the Plarium business.

Aristocrat Leisure Limited (ASX:ALL) has seen its stock price rise by 0.8%, reaching AU$69.92, marking its highest level since early December 2024. This increase is largely attributed to the company's strong performance in its gaming operations during the typical December trading period, as well as sustained outperformance from its casino business.

In its latest analysis, Jefferies analysts highlighted that the growth in Aristocrat’s casino business remains a key driver of the company’s positive momentum. Additionally, Eilers and Krejcik data revealed that Aristocrat has continued to expand its presence in the social casino market, increasing its market share from 13.8% to 14.7% in 3Q CY24.

The company's ability to grow its footprint in the social casino space is expected to continue, particularly after its strategic divestment of the Plarium business. According to analysts at Citi, this renewed focus on social casino will support further share gains in the coming quarters.

Investor sentiment towards Aristocrat remains positive, with 10 out of 13 analysts rating the stock as a "buy" or higher and three analysts maintaining a "hold" rating. The median price target for the stock is AU$72.25, according to LSEG. Furthermore, Jefferies has a "buy" rating on the stock with a price target of AU$77.

The company’s strong performance in 2024, with a 27.5% gain in its stock value, further bolsters investor confidence as Aristocrat continues to execute on its growth strategy.

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