agree - hopefully tomorrow we can blow past the $38 (and high...

agree - hopefully tomorrow we can blow past the $38 (and high 30's) and have something with a 4 in front of it. would look good from technical perspective. looking forward to being updated on the FY , long time in the dark since last update in May - see how close Morgan Stanley are in their forecast. FN arena reporting on 19 SEPT 2022 a BUY from all 7 brokers (Macquarie, Morgans, Credit Suisse, Morgan Stanley, Ord Minnett, Citi and UBS). SP up almost 20% since then $32 vs $37.88


ARISTOCRAT LEISURE LIMITED ((ALL)) Overweight weight by Morgan Stanley.

New analysts at Morgan Stanley "assume coverage" of Aristocrat Leisure and begin with an Overweight rating and set a $45 target. While prior coverage is not referenced, this is effectively an upgrade from an Equal-weight rating. The target has risen from $43.

The broker expects a re-rating of Aristocrat Leisure shares based on potential to become a meaningful player in i-Gaming in the US and to navigate a weaker consumer backdrop in that country. Past digital growth is also considered to be sustainable.

Apart from an attractive valuation, the analysts also see potential upside from the pursuit of M&A opportunities or capital management initiatives.

Industry View: In-Line.

COMMENTARY

Morgan Stanley forecasts FY22 revenue of $5,499m, a rise of 16% year-on-year, and a 27% increase in earnings (EBITA) to $1,626m, when Aristocrat Leisure reports FY22 results on November 16.

The Overweight rating and target price of $45.00 are retained. Industry view: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY22 EPS of 174.00 cents.