Are Aristocrat Leisure Limited shares a must-buy?

The Aristocrat Leisure Limited (ASX:ALL) share price may be up sharply this year, but is it still a must buy?

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Although the market has struggled to move higher this year, it certainly hasn't stopped the Aristocrat Leisure Limited (ASX: ALL) share price.

Much to the delight of its shareholders, year-to-date the gaming technology company's shares have risen a massive 39%.

Should you invest in its shares as well?

I think that Aristocrat Leisure would still be a great long-term buy and hold investment despite its strong gain this year.

While it may be best known for its pokie machines, the biggest attraction to the company in my opinion is its fast-growing digital segment which continues to deliver impressive user growth and recurring revenues.

I'm not alone in this view either. A research note out of Deutsche Bank this morning reveals that its analysts are still very bullish on its prospects.

Its analysts have retained their buy rating and $27.50 price target. Deutsche believes the company can continue to grow market share in North America thanks partly to the upcoming Dragon Link release.

Should Aristocrat Leisure's reach Deutsche's price target, it would mean a share price return of 27% from the current price. Not bad for a company that is already up 39% in 2017.

But that is of course just one broker's opinion and there is no guarantee that the share price will appreciate in value.

But that said, I do believe that its shares are great value given its current growth profile and offer a compelling risk/reward for investors today.

For this reason, I would class them as a strong buy and choose them ahead of Ainsworth Game Technology Limited (ASX: AGI).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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