Analysts Donald Carducci, Shaun Cousins and Shalin Doshi wrote following an investor day held by the gaming firm: “Aristocrat Leisure has headroom for growth in multiple North American segments. There is no indication design and development spend will abate as management aspiration for market ‘leadership’ is new.”
JP Morgan said the market opportunities in North America involved segments including so-called Class II video slots, video lottery terminals, Class III stepper slots and for bingo equipment.
Aristocrat Leisure has consistently claimed to have a large share of all the new slot machine units delivered to operators in the Macau market.
JP Morgan stated, referring to the general global appeal of the firm’s products: “Although Aristocrat Leisure could theoretically have 100% market share within a segment, it is unlikely they will exceed 35% to 40% market share as gaming floors seek to maintain diversity of offering.”
The brokerage said the investor day had “clarified” Aristocrat Leisure’s digital portfolio strategy regarding recent acquisitions, while “reiterating the core land-based opportunity”.
In a late April report, JP Morgan had suggested Aristocrat Leisure was hedging risk in online gaming thanks in part to the breadth of its product offering.
Source: GMB / GGR Asia
