ALL

ABN has rated the Aristocrat Leisure (ALL) stock with a Buy recommendation. The broker notes that the company stock is not trading at a 47 percent discount compared to competitor International Game Technology (IGT) and also comments that the gap is excessive given that the two companies have similar fundamentals.

A compilation of updates by brokers:

Macquarie Research Equities (MRE) maintains a preference for stocks with offshore growth exposures via the current resources boom. MRE favours the following Australian listed stocks: BHP Billiton (BHP), Rio Tinto (RIO) and Woodside Petroleum (WPL). MRE are also overweight international industrials in tight oligopolies (a market is dominated by a small number of sellers) like Rinker (RIN), Brambles (BIL), Aristocrat (ALL) and CSL Ltd. MRE also views the banking sector as a defensive part of a portfolio.

Macquarie Research Equities (MRE) reiterates their outperform recommendation for the stock Aristocrat Leisure (ALL). MRE have maintained their outperform recommendation despite the weaker Japanese outlook. "The poker-machine manufacturer warned at its AGM that it could post a first-half loss in its Japanese business. Management indicated that proposed changes to regulation, due to take effect on the 1 July 2007, has caused uncertainty in buyers as to whether to take machines which comply with previous guidelines or the proposed new regulations." Shares in Aristocrat fell almost 7%.

Macquarie Research Equities (MRE) has maintained their outperform recommendation on Aristocrat Leisure (ALL). Last Monday, Aristocrat Leisure (ALL) announced the purchase of the Scandinavian server-based video lottery maker, EssNet Interactive AB, for AUD$70m via a share purchase agreement. Since announcing the deal, ALL shares have dipped over 3%. MRE believes that there is more value in the deal and the market has undervalued the benefits of the transaction in the medium term.