Intelligent Investor

Aristocrat Leisure

By · 7 Dec 2012
By ·
7 Dec 2012 · 2 min read
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Recommendation

Aristocrat Leisure Limited - ALL
Buy
below 2.00
Hold
up to 2.75
Sell
above 5.00
Buy Hold Sell Meter
HOLD at $3.21
Current price
$41.07 at 16:40 (24 April 2024)

Price at review
$3.21 at (07 December 2012)

Max Portfolio Weighting
3%

Business Risk
High

Share Price Risk
High
All Prices are in AUD ($)

In our recent brief on Aristocrat Leisure’s full-year result, on 28 Nov 12 (Long Term Buy – $2.80), we noted that the stock was near the top of our range for Long Term Buy of $2.75. Well it’s been on a surge since then and now sits about 17% above the range.

The current price represents a multiple of almost 17 times prospective earnings per share for the year to September 2013 leaving little margin for error. We’re downgrading to HOLD.

Note: The Growth portfolio owns shares in Aristocrat Leisure.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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