A analysis report from JP Morgan final week had Aristocrat buying and selling on 27 instances earnings for the 2018 monetary yr and had a worth goal of $35, which might exceed the document excessive of $32.98 set in July.
“The longer the inventory is in an improve cycle, the larger the expectations turn out to be,” Ms Lee mentioned. “In some unspecified time in the future, it simply turns into too laborious to fulfill these expectations.”
The consequence was pushed by a document $207 million revenue from the Australasian enterprise, up 9 per cent on the prior yr, and a 16 per cent improve in earnings from the American continent to $US650 million.
“Aristocrat delivered robust, high-quality earnings progress over the 2018 fiscal yr, in opposition to a backdrop of principally flat markets and rising aggressive pressures,” Aristocrat chief government Trevor Croker mentioned.
“Recurring income, together with [from] gaming operations and digital social on line casino, accounted for 65 per cent of group revenues, up from 52 per cent the prior yr. This highlights the progress Aristocrat has made in delivering sustainable earnings and money circulate progress over time,” he mentioned.
Aristocrat mentioned it anticipated earnings for the present yr to be skewed in direction of the second half.
Expectations stay excessive for the present yr. JP Morgan, which had been anticipating the corporate to report a web revenue of $612 million for the yr to September 30, had forecast that Aristocrat’s revenue would soar to $765 million for the present monetary yr and $879 million in 2020.
“Aristocrat has robust recurring revenues and is constantly gaining market share in North America gaming operations,” JP Morgan analyst Donald Carducci mentioned.