The team at Wilsons has been looking over a couple of results from ASX 200 tech shares this month.
While it has differing views on their performances, it continues to be bullish on them both and holds them in its focus portfolio. Here's what the fund manager is saying about these tech shares:
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Aristocrat Leisure Ltd (ASX: ALL)
Wilsons has Aristocrat Leisure in its focus portfolio with a 4% weighting.
The broker notes that this gaming technology company delivered a first half result short of expectations. Though, it reminds investors that management had warned that there would be a second half skew, so this shouldn't have been a big surprise. It said:
While ALL fell short of expectations, this was partially a consensus issue, given ALL already flagged at its AGM that: 1) 1H25 fee per day would fall YoY; 2) NPATA growth would be 2H-skewed; and 3) the Plarium sale would be dilutive to earnings in the near-term. Looking forward, we remain confident ALL's growth will accelerate in 2H25.
In light of this, the fund manager thinks post-results share price weakness has created a compelling buying opportunity for investors. It explains:
With ALL's fundamentals unchanged, its valuation is attractive at a 12 month forward PE of 22.5x, given its EPS CAGR from FY25-30 is expected to be ~11%. Furthermore, it operates in an attractive industry, where its core exposure, US land-based gaming, has steadily and consistently grown its GGR with a five-year CAGR of 7.6%, with ALL able to grow above-system due to consistent market share gains. The industry is also incredibly resilient, having only three years of negative growth in the past three decades.
Xero Ltd (ASX: XRO)
Another ASX 200 tech share that Wilsons holds in its Focus Portfolio is Xero. The cloud accounting platform provider has a weighting of 3% in its portfolio.
Wilsons was impressed with the company's performance in FY 2025 and believes it demonstrates that price increases and subscription growth are possible at the same time.
It also highlights that there are multiple levers that Xero can pull to maintain its impressive growth trajectory. It said:
Xero's (XRO) FY25 results highlighted the continued strength of its underlying drivers, reassuring the market that it can continue growing its subscriber base while raising prices. Furthermore, the result demonstrated that management is astutely balancing out revenue growth and free cash flow generation. Overall, this result gives us further conviction in Xero's ability to pull the multiple levers it has available to maintain strong growth in an industry that continues to benefit from cloud adoption and digital transformation tailwinds.
