Australian gaming supplier Aristocrat Leisure Ltd. could face global supply chain difficulties that could impact sales in the second half of fiscal 2021, according to an investor note from J.P. Morgan.
The note said that due to disruptions to global supply chains due to the Covid-19 pandemic and increased demand from workers around the world working from home, the supply chain for hardware such as monitors, silicon chips, light tubes and button decks are hardest hit.
However, the phenomenon is likely to translated into strong demand for Aristocrat products in the first half of next year, according to J.P. Morgan.
“While equipment parts are creating a near-term issue for outright sales, we believe this shows the strength of the underlying demand for ALL’s products and the lack of competition in the market,” the note said.
The global supply issues are not expected to affect sales in Aristocrat’s home markets of Australia and New Zealand, where the company maintains a dominant market share.