Light & Wonder stock target raised to $95 by Stifel analysts

On Thursday, Stifel analysts increased the price target on Light & Wonder (NASDAQ:LNW) shares to $95 from the previous $84, while maintaining a Hold rating. The firm’s analysts noted that Light & Wonder’s first-quarter performance aligned with expectations, driven by robust North American replacement sales and a broad-based margin upside. This helped to balance out weaker results in other key performance indicators (KPIs).

The focus for Light & Wonder has shifted from the first quarter to assessing the potential effects of tariffs. Management has expressed a balanced view, showing optimism that the direct costs from tariffs can be largely mitigated. However, they also recognize the impact of uncertainty on operators’ near-term slot purchasing decisions. Additionally, Light & Wonder has paused its evaluation of a potential primary listing on the Australian Securities Exchange (ASX).

Despite full recovery in share value since ’Liberation Day’, Light & Wonder’s stock is still trading 17% below its twelve-month high. Analysts at Stifel believe the company’s valuation is becoming more attractive, assuming a stable macroeconomic environment. They highlight the continued momentum in slot product sales, potential significant revenue synergies from Grover, and a clearer path to resolving the ongoing litigation with Aristocrat.

Nevertheless, Stifel analysts remain cautious due to the possible direct and indirect challenges posed by tariffs. They have reiterated their Hold rating on Light & Wonder stock and are looking forward to the company’s Investor Day on May 20, 2025. The firm has also raised its forecast for Light & Wonder’s adjusted EBITDA for fiscal years 2025 and 2026 by 4% and 2%, respectively.

In other recent news, Light & Wonder, Inc. reported first-quarter earnings that did not meet analyst expectations. The company posted adjusted earnings per share of $0.94, falling short of the consensus estimate of $1.11. Revenue also missed projections, coming in at $774 million compared to the expected $806.04 million. Despite these misses, Light & Wonder recorded its 16th consecutive quarter of year-over-year consolidated revenue growth, with a 4% increase in Gaming revenue to $495 million. However, SciPlay (NASDAQ:SCPL) revenue experienced a 2% decline to $202 million. The company repurchased approximately 1.9 million shares of common stock for $166 million during the quarter and maintained its 2025 consolidated AEBITDA target of $1.4 billion. Consolidated AEBITDA rose 11% year-over-year to $311 million, while net income remained flat at $82 million. Light & Wonder also noted that its $850 million acquisition of Grover Gaming’s charitable gaming business is on track to close in the second quarter of 2025.

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