Light & Wonder: Strong Growth Potential and Strategic Positioning Justify Buy Rating

Light & Wonder (LNW – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Mike Hickey from Benchmark Co. reiterated a Buy rating on the stock and has a $100.00 price target.

Mike Hickey has given his Buy rating due to a combination of factors that highlight Light & Wonder’s strong growth potential and strategic positioning. The company has successfully transformed into a high-margin, content-driven global games entity, with significant reductions in net debt leverage and substantial returns to shareholders. The management’s reaffirmation of their AEBITDA targets, alongside the introduction of ambitious future goals, underscores their commitment to growth.
Light & Wonder’s Gaming segment is positioned as the primary growth engine, supported by its content leadership and expansion into new high-margin verticals. The integration of Grover is expected to enhance scale in the underpenetrated charitable gaming market. Additionally, the company’s strong market presence, consistent execution, and strategic investments in digital infrastructure and content development are expected to drive continued revenue and AEBITDA growth, justifying the Buy rating.

Hickey covers the Communication Services sector, focusing on stocks such as National Cinemedia, Electronic Arts, and IMAX. According to TipRanks, Hickey has an average return of 3.1% and a 60.40% success rate on recommended stocks.