The Aristocrat Leisure Limited (ASX: ALL) share price is pushing higher on Thursday.
In morning trade, the gaming technology company's shares are up 1% to $32.32.
Why is the Aristocrat share price pushing higher?
The catalyst for the rise in the Aristocrat share price appears to have been a broker note out of Goldman Sachs.
According to the note, the broker has reinstated coverage on the company with a buy and $43.00 price target.
Based on the current Aristocrat share price, this implies potential upside of 33% for investors over the next 12 months.
What did the broker say?
Goldman is feeling very positive on the Aristocrat share price for a number of reasons. This includes its current valuation and very positive growth outlook.
The broker commented: "At current levels, we see plenty of valuation support for ALL, both in absolute and relative terms noting, especially in terms of the double-digit forecast 3yr CAGR EBIT growth out to FY24E which is ahead of the market."
Goldman expects this strong growth to be underpinned by "its relentless commitment to D&D [design and development] particularly during the pandemic which will deliver medium-term tailwinds" and its "well diversified digital business positioned for longer term structural growth."
In addition, the broker highlights the company's huge (and important) opportunity in real money gaming (RMG).
It explained: "We see ALL's strategic shift into RMG as critical over the medium to longer term given the significant runway of growth and addressable market. We see it as an opportunity to grow overall earnings, with clear synergy benefits from the overlapping content, but more importantly view it as a way to defend against potential cannibalization of its North American land based business."
All in all, this could make the Aristocrat share price one to consider at current levels.
