The Aristocrat Leisure Limited (ASX: ALL) share price is edging lower on Friday.
In afternoon trade, the gaming technology company's shares are down slightly to $33.40.
This means the Aristocrat share price is down almost 27% in 2022.
Is the Aristocrat share price good value now?
One leading broker that believes the weakness in the Aristocrat share price this year is a buying opportunity is Citi.
According to a note out of the investment bank this morning, its analysts have initiated coverage on the company's shares with a buy rating and $44.00 price target.
Based on the current Aristocrat share price, this implies potential upside of just under 32% for investors over the next 12 months.
Why is Citi bullish on Aristocrat?
The note reveals that Citi believes Aristocrat would be a great long term option for investors thanks to its mobile game business and new market opportunities. The latter includes real money gaming, which the company attempted to enter with the failed acquisition of Playtech.
Citi commented:
"Aristocrat represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets. The Gaming business offers annuity like earnings through its Class III gaming operations.
In Digital, we believe the market is implying at least three new hit titles across the RPG, Action, Strategy, and Social Casual genres by FY24e, putting pressure on recent releases to be successful. In contrast, expectations appear reasonable for the higher margin Social Casino genre where Aristocrat is a market leader.
Despite the Playtech acquisition not proceeding, the immense opportunity in Real Money Gaming remains. We initiate with a Buy rating and a $44.00 target price."
All in all, this could make Aristocrat one to consider right now.
