Morgans had been expecting a significant acquisition from Aristocrat Leisure in the rapidly-growing online real money gaming (RMG) industry before yesterday's acquistion announcement.

The company is seeking to acquire online RMG platform and technology provider NGMS for an enterprise value of -$1.8bn.

In the analyst's opinion, Aristocrat has some of the best iGaming content globally, and it will now be able to use NGMS's platform to deploy that content, while also accelerating NGMS's growth across its various verticals.

Morgans assumes the acquisition completes in the middle of FY24 and raises its target price to $46 from $43. Add.

Sector: Consumer Services.

Target price is $46.00.Current Price is $38.69. Difference: $7.31 - (brackets indicate current price is over target). If ALL meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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