Analyst David Katz of Jefferies reiterated a Buy rating on Light & Wonder (LNW – Research Report), retaining the price target of $121.00.
David Katz has given his Buy rating due to a combination of factors, including Light & Wonder’s strong performance in its core land-based gaming segment. The company has demonstrated product momentum, with significant year-over-year increases in unit shipments and average selling prices, which have contributed to solid topline and adjusted EBITDA results.
Furthermore, the strategic initiatives such as user acquisition and direct-to-consumer platform revenue growth have led to an expansion in EBITDA margins. The company’s expansion into new markets, including Oregon State and Canada, has improved its North American market share. Additionally, the decision to divest from the live casino business and the substantial share repurchase during the quarter are seen as positive steps. These factors, combined with a favorable valuation context, support the Buy rating.
According to TipRanks, Katz is a 4-star analyst with an average return of 8.9% and a 46.19% success rate. Katz covers the Consumer Cyclical sector, focusing on stocks such as MGM Resorts, DraftKings, and Gambling.com.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $110.00 price target.