Aristocrat HQ

Aristocrat Leisure is the top pick in Australian gaming for analysts at J.P. Morgan, who expect the company to post an almost 20 percent gain in revenue this year. 

For the fiscal year, the analysts forecast revenue of A$5.6 billion, rising to $6.53 billion next year and $7 billion in 2024.

“ALL is a slot machine manufacturer with operations in ANZ, the Americas, and International Class III segments, as well as a fast-growing Digital division,” the analysts wrote. “ALL has been consistently gaining market share in North American gaming operations. ALL has significantly increased its digital exposure and continues to develop titles for both land-based and digital platforms.”

“Further digital growth and capital management opportunities are available, coupled with strong execution by management, despite a challenging cyclical environment. We believe the risk/reward remains attractive.”

In the J.P. Morgan Australia Mid-Year Prospects series, the analysts pointed to Pointsbet Holding as being their least preferred gaming stock.

The company has a high cash burn rate and is not sufficiently large enough to gain significant market share in the highly competitive U.S. sports betting market.