Macquarie analyst Chad Beynon has maintained their bullish stance on LNW stock, giving a Buy rating today.
Chad Beynon’s rating is based on the company’s strong financial performance, including a 13% year-over-year increase in EBITDA and quarterly records across all reporting segments. Additionally, Light & Wonder’s Gaming segment experienced a robust quarter, with a significant increase in outright volumes and a growing installed base. These factors contribute to the company’s progress towards its US$1.4 billion EBITDA target for 2025, indicating a healthy 12% 2-year compound annual growth rate, which underpins the positive outlook for the stock.
Furthermore, the company’s strategic initiatives, such as the successful launch of Dragon Train and the expansion of the direct-to-consumer platform within SciPlay, are expected to drive future growth. The iGaming segment also presents attractive growth prospects and is making investments to scale up effectively. These aspects, coupled with raised EBITDA estimates for the coming years and the potential for market share gains, support a higher valuation for Light & Wonder, justifying the Buy rating and the increased target price.
In another report released today, Craig-Hallum also reiterated a Buy rating on the stock with a $130.00 price target.
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Light & Wonder (LNW) Company Description:
Scientific Games Corp. engages in the development of technology-based products and services and associated content. It operates through the following business segments: Gaming, Lottery, and SciPlay and Digital. The Gaming segment designs, develops, manufactures, markets, and distributes a comprehensive portfolio of gaming products and services. The Lottery segment comprises of system-based services and product sales business, and instant games business. The SciPlay segment developes and publishes digital games on mobile and web platforms. The Digital Segment provides a comprehensive suite of digital gaming and sports wagering solutions and services, including digital RMG and sports wagering solutions, distribution platforms, content, products and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.
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