Aristocrat Leisure reported a 30% increase in FY18 after tax earnings at A$730m.
The result was slightly below consensus and recent digital acquisitions were offset by lower than anticipated margins in the Americas.
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The outlook commentary remains positive and FY19 EPS growth is forecast at 10%+. Aristocrat continues to invest for the future, with an additional $100m identified for digital acquisitions.
On a forward basis, we have ALL trading on a 2.2% yield into FY19 and we see price support at $22.50
Based on FY20 PE of 18x earnings we can justify an upside price target of $26.00
