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On Wednesday, Jefferies analyst David Katz adjusted the price target for Light & Wonder (NASDAQ: LNW) shares, bringing it down to $116.00 from the previous $121.00 while retaining a Buy rating on the company’s stock. Katz’s commentary followed the LNW investor meeting, where the company outlined its business strategy leading up to fiscal year 2028, projecting an Adjusted EBITDA of $2.0 billion. This forecast represents a compound annual growth rate (CAGR) of 12%.
Katz noted that several factors contribute to the company’s positive outlook. The growth drivers include an increase in the premium installed base, the recent acquisition of Grover, and expansion in the digital sector. These elements, combined with the company’s impressive 71.2% gross profit margins and GOOD financial health score from InvestingPro, support its ambitious financial targets and suggest they are within reach.
The analyst expressed confidence that Light & Wonder’s assets and resources are well-positioned to take advantage of a favorable market environment and solid execution. Katz’s assessment implies that the company’s strategic initiatives are on track to meet the financial aspirations it has set for the coming years.
Light & Wonder’s focus on these strategic areas is part of a broader effort to strengthen its market position and deliver sustained growth. The adjusted price target reflects Jefferies’ belief in the company’s ability to achieve its outlined financial goals.
Investors and stakeholders will likely monitor Light & Wonder’s progress against its targets closely, especially considering the potential of the company’s growth strategies and market opportunities. The updated price target from Jefferies serves as a current assessment of the company’s valuation based on these factors.
In other recent news, Light & Wonder reported first-quarter earnings for 2025 that did not meet analyst expectations, with adjusted earnings per share at $0.94 compared to the anticipated $1.11. The company’s revenue reached $774 million, falling short of the projected $807 million, but it marked the 16th consecutive quarter of year-over-year revenue growth. Despite the revenue miss, the company’s consolidated AEBITDA margin improved by 300 basis points to 40%. Light & Wonder completed the acquisition of Grover Gaming’s charitable gaming business for $850 million, supported by a new $800 million Term Loan A Facility secured with JPMorgan Chase (NYSE:JPM) Bank. Benchmark analysts lowered their price target for Light & Wonder to $100, maintaining a Buy rating, while Stifel analysts raised their target to $95 with a Hold rating. The company repurchased approximately 1.9 million shares of common stock for $166 million during the quarter. Management continues to target a full-year 2025 AEBITDA of $1.4 billion, excluding Grover’s impact, aligning with consensus estimates. Light & Wonder has paused its evaluation of a potential primary listing on the Australian Securities Exchange.
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