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.
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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.
