Aristocrat Leisure's NeoGames takeover has strategic value - brokerages

NeoGames SA

15/05/2023 22:17

** Aristocrat Leisure's  ALL.AX  $1 bln deal for online
gaming solutions provider NeoGames SA  NGMS.O  has clear
strategic value for the co as it supports its ambitions for
global scale and capability - Jefferies
    ** Analysts at Jefferies raise price target on the
Australian co's stock to A$39.36 from A$35.25 over positive M&A
news and strong earnings momentum
    ** Brokerage Citi says the deal allows ALL to market
complete solutions to casino partners across its own content,
aggregation of third-party titles and player account management
    ** Citi adds that NeoGames deal accelerates financial
contribution of real-money gaming (RMG) strategy and dilutes the
impact of a slower digital market
    ** Both brokerages expect ALL to report strong first half
results on May 18, driven by strength in the land segment 
    ** As of last close, stock up 29.5% this year


 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))