Aristocrat Leisure Limited (ALL)
BUY

ALL - Stock Update

 3 Feb 2022
Sector: Consumer Discretionary

Disappointing outcome for ALL with their PTEC bid, but all is not lost, as they will likely have an opportunity to bid for parts of PTEC in time.

PTEC management had already indicated that they will explore a break-up if the ALL deal fails, which could pave way for ALL to come back and bid for just the B2B business (which is the priority acquisition).

In the meantime, ALL is likely to pursue other iGaming/real money gambling M&A Options.

Overall, our investment thesis on ALL is unchanged (Core businesses are performing well).

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Company overview

Aristocrat Leisure Limited is an Australian digital and land-based gambling manufacturer and provider.

Our investment thesis on ALL remains a buy regardless of the disappointing PTEC rejection. Land-based & digital businesses have entered 2022 with great momentum and acquisition opportunities are still being explored which could potentially offer a great growth position for the company.

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