Benchmark maintains Buy on Light & Wonder stock, $114 target

Published 19/02/2025, 15:54
Benchmark maintains Buy on Light & Wonder stock, $114 target

On Wednesday, Light & Wonder (NASDAQ: LNW) received reaffirmation for a Buy rating and a $114.00 price target from analysts at Benchmark. The endorsement comes in light of the company’s recent acquisition of Grover Gaming, which is expected to bolster its position in the charitable gaming market.

The acquisition is seen as a strategic fit for Light & Wonder, enhancing its portfolio with a focus on high-margin, recurring revenue streams. Charitable gaming includes regulated activities like raffles, bingo, and various forms of pull tabs, with a portion of proceeds supporting nonprofit causes and community programs.

Benchmark highlighted the deal’s potential to create revenue synergies and market expansion opportunities. By integrating Light & Wonder’s gaming content with Grover Gaming’s established distribution network, the company aims to strengthen its cross-platform strategy.

The transaction is aligned with Light & Wonder’s long-term growth objectives, according to Benchmark. It leverages the company’s ongoing research and development investments and offers a scalable path in a market that is both regulated and underpenetrated, yet characterized by robust cash flow.

Analysts at Benchmark have expressed confidence in the strategic move, suggesting that it will contribute positively to Light & Wonder’s market presence and financial performance.

In other recent news, Light & Wonder, Inc. has made several notable announcements. The company reported a regulatory disclosure to the Australian Securities Exchange, ensuring transparency with stakeholders through a Statement of CHESS Depositary Interests. Light & Wonder also secured a $1 billion revolving credit facility, enhancing its financial flexibility and replacing a previous $750 million credit line. This amendment, facilitated by JPMorgan Chase (NYSE:JPM) Bank, extends the maturity of revolving commitments to 2030.

Additionally, Light & Wonder achieved a legal victory in the U.S. as a federal judge dismissed a patent infringement lawsuit by Evolution, which challenged the company’s RouletteX game. This ruling has alleviated some legal uncertainties for Light & Wonder. In Australia, the company won another legal battle against Aristocrat Leisure regarding its Dragon Train game, further strengthening its market position. Analyst firm Benchmark has maintained a Buy rating on Light & Wonder, citing these legal victories as positive developments.

Furthermore, the company announced Nathan Drane as the new Chief Product Officer, unifying game development under his leadership to drive future growth. These recent developments highlight Light & Wonder’s strategic efforts to maintain compliance, enhance financial stability, and fortify its competitive stance in the gaming industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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