Jackpot! Citi predicts Aristocrat stock price to rise 30%

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the Aristocrat Leisure Limited (ASX: ALL) The stock price is down on Friday.

In afternoon trading, shares of the gaming tech company are down slightly at $33.40.

This means Aristocrat’s stock price is down almost 27% in 2022.

Is Aristocrat stock price good now?

A top broker who believes Aristocrat’s stock price weakness this year is a buying opportunity is City.

According to a note from the investment bank this morning, its analysts initiated a hedge on the company’s stock with a buy rating and a price target of $44.00.

Based on the current Aristocrat stock price, this implies an upside potential of just under 32% for investors over the next 12 months.

Why is Citi bullish on Aristocrat?

The note reveals that Citi believes Aristocrat would be a great long-term option for investors thanks to its mobile games business and new market opportunities. The latter includes real-money gaming, which the company attempted to enter with the failed acquisition of Playtech.

Citi commented:

“Aristocrat represents a compelling long-term growth story, with exposure to continued growth in mobile gaming penetration and potential for growth in new markets. The gaming business offers rent like revenue through its Class III gaming operations.

In Digital, we think the market calls for at least three new blockbuster titles across the RPG, Action, Strategy and Social Casual genres by FY24e, putting pressure on recent releases to succeed. In contrast, expectations seem reasonable for the kind of higher-margin social casino where Aristocrat is a market leader.

Although the acquisition of Playtech will not proceed, the huge opportunity in real-money gambling remains. We start with a buy rating and a target price of $44.00.

All in all, this could make Aristocrat something to consider right now.