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Morningstar says Aristocrat’s competitive strength still in gaming machines, not iGaming
A recent report by Morningstar highlights Aristocrat’s stronghold in traditional gaming machines over the highly competitive iGaming sector. The investment research firm expresses caution about the company’s online gaming potential.
Key Points
- Morningstar believes Aristocrat excels more in the gaming machine market than in online gaming.
- The iGaming sector remains fiercely competitive, with Aristocrat struggling to replicate its gaming machine success.
- Despite recent mergers and acquisitions, including the purchase of NeoGames, Aristocrat’s core strengths lie in gaming machines.
- The firm’s installed base of over 71,000 machines in North America significantly outpaces competitors like Light & Wonder, which has around 34,000.
- Morningstar estimates a fair value of AU$50.00 per share for Aristocrat, while its current trading price is around AU$65.00.
Why should I read this?
This article is essential for investors and stakeholders in the gaming industry, as it provides a critical perspective on Aristocrat’s strategic positioning amidst growing competition in the online gaming arena. Understanding these dynamics can help inform investment decisions and highlight the ongoing importance of traditional gaming machines in Aristocrat’s business model.
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