Light & Wonder stock target increased, buy rating on recovery prospects

Published 15/01/2025, 15:54
Light & Wonder stock target increased, buy rating on recovery prospects

On Wednesday, Jefferies analyst updated the investment firm's outlook on Light & Wonder shares (NASDAQ: LNW), increasing the price target to $121.00 from $120.00, while reiterating a Buy rating on the stock. Katz highlighted that despite Light & Wonder shares experiencing a 26% decline from their peak on September 19, 2024, the company's prospects remain promising.

Katz pointed out that the ongoing legal issues with a competitor are not expected to significantly affect Light & Wonder's financials. This is largely due to the current market dynamics that are in favor of Light & Wonder and its major competitors.

Based on these financial forecasts, Katz believes that Light & Wonder's stock is likely to recover and approach the newly set price target of $121.00. The firm's analysis suggests confidence in the company's ability to navigate current challenges and capitalize on its competitive position in the market.

According to InvestingPro's Fair Value analysis, the stock appears to be currently undervalued. Investors and market watchers will be keeping an eye on Light & Wonder's performance in the coming months to see if the company's stock trajectory aligns with Jefferies' expectations. The company's next earnings report is scheduled for March 4, 2025.

Based on these financial forecasts, Katz believes that Light & Wonder's stock is likely to recover and approach the newly set price target of $121.00. The firm's analysis suggests confidence in the company's ability to navigate current challenges and capitalize on its competitive position in the market.

Investors and market watchers will be keeping an eye on Light & Wonder's performance in the coming months to see if the company's stock trajectory aligns with Jefferies' expectations.

In other recent news, Nevada-based Light & Wonder, Inc. has reported a 12% year-over-year increase in Q3 2024 revenue, reaching $817 million.

This marks the company's 14th consecutive quarter of growth, with a noteworthy 15% revenue boost in the gaming segment, primarily driven by a 38% rise in global gaming machine sales. The company also disclosed a consolidated AEBITDA of $319 million and an Adjusted NPATA increase of 23% to $122 million.

In addition to these financial highlights, Light & Wonder has recently provided regulatory updates to the Australian Securities Exchange (ASX). The updates, known as Appendix 4A, are routine measures ensuring compliance with international securities regulations, and do not alter the company's financial position or reflect any significant changes to its operations.

Looking forward, the company anticipates a low single-digit AEBITDA growth for Q4 2024, but expects to return to normalized growth in 2025. Analysts from various firms have highlighted the company's diversified portfolio, noting its leading market share in Asia and its number one ship share in the Australian market. These are the recent developments in the ongoing journey of Light & Wonder.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.