Australian slot manufacturing giant Aristocrat Leisure Limited has room for growth in the land-based sector, particularly in North America, according to a report from JP Morgan Securities Australia Ltd.
“Aristocrat Leisure has headroom for growth in multiple North American segments,” wrote analysts Donald Carducci, Shaun Cousins and Shalin Doshi following an investor day held by the supplier. “There is no indication design and development spend will abate as management aspiration for market ‘leadership’ is new.”
The report cited market opportunities in the Class II segment, including stepper slots, as one of the factors leading to Aristocrat’s sustained growth.
“Although Aristocrat Leisure could theoretically have 100-percent market share within a segment, it is unlikely they will exceed 35 percent to 40 percent market share as gaming floors seek to maintain diversity of offering,” the repot said, adding that the company’s digital portfolio management strategy was “sound”, although it said “platform/genre risks remain”.
