Since testing a key support level at $27.00 last Friday, shares of ALL have rallied over 10% to hit a 1-month high of $29.60 in early trade today.
The stock has been supported by suggestions that next month’s full-year profit announcement is likely to surprise to the upside by as much as 20% in the group’s social gambling business.
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At $29.40, ALL is at about 19X estimated FY 2019 earnings. In addition, given ALL’s exposure in the USA, a further fall in the AUD/USD will act as a tailwind going into next year.
ALL is part of our ASX Top 50 Model portfolio and we have an upside target of $40.50 over the medium-term.
Aristocrat
