Aristocrat Leisure Ltd (ASX: ALL) shares have come under pressure this week.
The ASX 200 blue chip stock was sold off on Wednesday despite the release of a strong FY 2025 result.
The gaming technology company posted an 11% increase in revenue to $6,297 million and a 12% jump in normalised NPATA to $1,550.7 million.
Has this created a buying opportunity for investors? Let's find out.
Broker reaction
Bell Potter was pleased with the ASX 200 stock's performance in FY 2025, highlighting that its result was ahead of expectations. It said:
ALL reported +7.6% YoY constant currency (CC) continuing revenue growth to $6,297m above BPe of $6,256m and VA consensus of $6,232m. […] Normalised NPATA of $1,551m was up +8.8% YoY (+1% beat vs. BPe). The gaming ops install base grew by 4.1k units to 75.2k, a miss on BPe and consensus expectations of 5.1k net adds. The EBITA beat was driven by exceptionally strong shipments into ANZ and the North American Class 3 and adjacencies markets.
It also notes that management is guiding to further growth in FY 2026. It adds:
ALL expects to deliver NPATA growth over FY26 on a CC basis, reflecting market share gains in Gaming and Product Madness and continued scaling in Interactive. ALL also guided to D&D investment growth in the mid-single digits and Product Madness UA spend in the 18-21% range.
Bell Potter is now forecasting NPATA growth of 10% to $1,706 million in FY 2026, followed by further growth of 10.7% to $1,889 million in FY 2027.
Time to buy
In response to the result, Bell Potter has retained its buy rating with a slightly improved price target of $80.00 (from $79.00).
Based on its current share price of $56.42, this implies potential upside of approximately 42% for investors over the next 12 months.
To put that into context, a $10,000 investment would turn into over $14,000 by this time next year if Bell Potter is on the money with its recommendation.
Commenting on its buy recommendation, the broker said:
We retain our Buy recommendation. We continue to expect ALL's leading R&D investment will drive market share gains. Top 2 game performance observed in both the core sales and premium gaming ops markets leaves us confident that ALL will grow the install base >4.0k per year and grow global shipments. Further, with leverage standing at 0.2x, ALL has substantial M&A firepower to boost growth inorganically.
