The Aristocrat Leisure Limited (ASX: ALL) share price has underperformed the market on Thursday.
At the time of writing the gaming technology company's shares are down 1.5% to $23.55.
Why is the Aristocrat Leisure share price lower today?
With no news out of the company, today's decline appears to be related to developments in the United States this week.
According to Fortune, the U.S. Justice Department now says that all internet gambling is illegal, reversing its 2011 opinion on the Wire Act which established that the law was only applicable to sports betting.
The Department of Justice now claims that the 2011 opinion misinterpreted the statute and has reinterpreted the Wire Act to include all forms of gambling that crosses state boundaries.
This appears to have sparked fears that it could be easier for cases to be brought against online gambling companies.
Some investors may feel Aristocrat Leisure could be targeted in the future because of its digital and social gaming business.
However, one broker that doesn't believe this will be the case is UBS. According to a note out of the investment bank, it doesn't expect this to have a direct impact on Aristocrat Leisure, though it does believe that this sort of regulatory intervention could weigh on the sector.
Despite this, the broker continues to believe that the company's shares are in the buy zone.
It has retained its buy rating and $34.00 price target, which implies potential upside of over 44% for its shares over the next 12 months.
Should you invest?
I agree with UBS on Aristocrat Leisure and believe it is one of the best value growth shares on the Australian share market right now.
Its shares are currently changing hands at 23x earnings at present, which I feel is great value for a company that has a long track record of strong earnings growth and a positive medium term outlook.
I would put it up there with Appen Ltd (ASX: APX) and Bravura Solutions Ltd (ASX: BVS) as a tech share to consider buying this week.
