JPMorgan downgrades Light & Wonder stock rating on growth concerns

Published 07/08/2025, 10:24
JPMorgan downgrades Light & Wonder stock rating on growth concerns

Investing.com - JPMorgan downgraded Light & Wonder (NASDAQ:LNW) from Overweight to Neutral on Thursday, while lowering its price target to $95.00 from $108.00.

The downgrade reflects concerns about the company’s ability to achieve its original EBITDA targets through organic growth alone. JPMorgan noted that Light & Wonder’s revised FY25 EBITDA guidance of $1.43 billion to $1.47 billion now includes contributions from its Grover acquisition.

The investment bank highlighted that Light & Wonder would need to deliver approximately 15% EBITDA growth in the second half of 2025 to reach the mid-point of its guidance range. This represents a significant acceleration compared to the 11% growth in Q1 and 7% growth in Q2 of this year.

JPMorgan expressed skepticism about this growth trajectory, suggesting the core business will struggle to achieve the original $1.4 billion EBITDA target on its own.

The firm also pointed to potential challenges with free cash flow outcomes and gearing that could impact Light & Wonder’s financial performance moving forward.

In other recent news, Light & Wonder Inc. reported its second-quarter earnings for 2025, revealing a strong performance in terms of earnings per share (EPS). The company posted an EPS of $1.58, exceeding analyst expectations of $1.36 by 16.18%. However, the company experienced a revenue shortfall, reporting $809 million in revenue, which fell short of the forecasted $851.13 million. Despite the revenue miss, the earnings report reflects the company’s ongoing strategic initiatives and market positioning. Additionally, analysts from various firms have been closely monitoring these developments, which may influence future assessments. These recent developments highlight the company’s financial performance and strategic direction.

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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