Why this broker thinks the Aristocrat Leisure (ASX:ALL) share price can go higher

The Aristocrat Leisure Limited (ASX:ALL) share price has been tipped to climb higher from here by a couple of leading brokers…

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The Aristocrat Leisure Limited (ASX: ALL) share price has been a very strong performer in 2021.

Since the start of the year, the gaming technology company's shares have risen a sizeable 15.5%.

This means the Aristocrat Leisure share price is trading within sight of its record high.

Businessman with hands on hips looks at share price chart with the words 'buy' and 'sell '

Image source: Getty Images

Can the Aristocrat Leisure share price go higher?

One broker that believes the Aristocrat Leisure share price can still go higher from here is Goldman Sachs.

This morning the broker responded to new industry data by retaining its buy rating and lifting its price target to $37.48.

This compares to its current share price of $36.29.

What did Goldman say?

Goldman notes that the performance of its digital business remains strong and continues to win market share from rivals.

The broker said: "We assess the latest digital trends to Mar-31 (1H21) which remain robust and consistent with ALL's recent commentary at its investor roundtable wherein it continues to take share from major competitors across Social Casino, as well as better-than-expected performances from EverMerge/RAID."

Goldman Sachs also spoke positively about the rest of the business, which is showing signs of improvement.

It explained: "Beyond digital, we also highlight our recent channel checks suggesting that ANZ continues to show improvement, with upside risk from potential activity/operator appetite for purchases over the next 12-24 months whilst in North America, ALL continues to operate above market levels."

"Further, we note comments yesterday from Oklahoma Indian Gaming Association chair that trends in Oklahoma continue to show marked improvement and should be at pre-COVID levels by June, which bodes well for ALL given its overweight position in the area."

This ultimately led to the broker upgrading its earnings forecasts for the coming years and its price target accordingly.

And while Goldman's price target doesn't imply a huge amount of upside based on the current Aristocrat Leisure share price, other brokers see it going even higher.

Citi, for example, has a buy rating and $40.60 price target on its shares. This implies potential upside of 12% over the next 12 months.

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. 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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