Three Upgrades: ALL, RHC, NVT

  Has Aristocrat Leisure finally seen off the spate of & #160;poor news that has damaged its reputation with investors over the past couple of years?Yesterday's surprise trading update for 2009 indeed holds out that hope.The shares jumped more than 13% & #160;in an early reaction to a forecast for a higher than expected trading profit for 2009.The shares ended up 44c, or 11%, at & #36;4.51.Aristocrat & #160;said it now expects its operating profit to be around & #36;116 million for the year ended last December.However, the company said it will book abnormal provisions totalling & #36;187.3 million, leading to a full-year loss, because of the settlement of a class action with investors in a US bond issue.Aristocrat said in its statement that it & quot;confirms that it expects to exceed market consensus estimates for operating profit before non-recurring items for the year ended 31 December 2009. & quot;The Company's operating profit (pre abnormal items) after tax and minority interest is expected to be approximately & #36;116 million for the year ended 31 December 2009. & quot;The Company also confirms it will recognise an abnormal provision of & #36;187.3 million (after tax) in its 2009 financial accounts relating to the expected damages liability associated with the U.S. Convertible Bonds matter. This figure includes interest calculated to 30 April 2010. & quot;The decision to recognise an abnormal provision does not in any way pre suppose the US District Court's final pending judgment on damages or any Company decision to appeal some or all aspects of the case. & quot;The Company and the Bondholders have made final submissions to the District Court and now await the Court's final judgment in the case. & quot;Total abnormals for the year will include the impairment of multi-terminal gaming businesses, intellectual property litigation settlement, property sales and restructuring costs. & quot;The Company therefore will report a loss (post abnormal items) after tax and minority interest for the year ended 31 December 2009. & quot;These results remain subject to completion of year end procedures including the completion of the audit and Board approval, and therefore may change before finalisation, & quot; the company concluded.Aristocrat will release its final results for the full year ended 2009 on & #160;February 23.  

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