Huge Broker Upgrades- Will Fly!, page-32

from the australian

Aristocrat growth momentum lagging: CS
Poker machine giant Aristocrat’s foray into digital gaming isn’t growing as quickly as expected according to Credit Suisse.
The broker pushed out its sales growth ‘step up’ for Aristocrat’s digital business as its new apps were seemingly constrained by falling Heart of Vegas revenue.
Adding to that, it said a lower AUD/USD assumption would drive up D&D and interest expense - downgrading its earnings per share expectations to 6pc for FY18 and 1-4pc for FY19-21.
“Our DCF-based target price remains A$35.00 while our downgrades represent a delay in the development of digital revenue rather than a forecast shortfall. Moreover, Aristocrat is likely to be quite under-levered by end-FY19 and value-adding acquisitions in the digital arena may drive the share price,” it said.
Aristocrat shares dropped as much as 3pc to $28.2 in trade on Friday, last at $28.63.`