ALL’s exposure to recurring revenue is increasing, although the business remains exposed to cyclical trends.
The market’s response to Aristocrat acquiring Big Fish has been mixed.
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We see the the deal as 3 – 4% EPS accretive in 2019 and will help to underpin EPS growth of 20%, placing ALL on a 2019 dividend yield of 3.3% and a PE of 20x earnings.
ALL is among the best performing stocks in our ASX 50 model and we advise investors to look for near-term buying support along with the next Algo buy signal.
Aristocrat
