There could be significant value on offer with the Aristocrat Leisure Limited (ASX: ALL) share price at current levels.
That's the view of analysts at Goldman Sachs, which have just reiterated their bullish view on the ASX 200 gaming technology share following its investor round table event.
Image source: Getty Images
What is Goldman saying about this ASX 200 share?
According to the note, the broker has retained its buy rating and $42.80 price target on the company's shares.
Based on where this ASX 200 share is currently trading, this implies potential upside of 18.5% for investors over the next 12 months.
And with Goldman expecting a 2.1% dividend yield from its shares, the total potential return stretches beyond 20%.
Aristocrat has a 'significantly strong' outlook
Goldman is bullish on this ASX 200 share due to its belief that it has a very positive outlook. This is for both Aristocrat's core poker machine and digital businesses, as well as its fledging Anaxi (iGaming) business.
In response to the investor round table, the broker commented:
Overall, ALL's progress remains on track with expectations with Australia gaming noted to be weak (GSe Australia Segment profit for 1H23e expected -28% vs. pcp). We view ALL as strategically the most diversified amongst our gaming coverage, holding a top 3 spot in slot machine sales in the US, having a strong digital gaming offering, and now the launch into the growing iGaming market. While short-term headwinds persist in the form of supply chain, spend for longer term growth etc., ALL's outlook and iGaming opportunity remain significantly strong, in our view. We are Buy rated on ALL.
All in all, the broker believes this is a top growth share for investors to buy right now.
