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On Wednesday, Truist Securities maintained a positive stance on Light & Wonder (NASDAQ:LNW), as analyst Barry Jonas reiterated a Buy rating with a $110.00 price target. Following the company’s analyst day, which took place on Tuesday, Light & Wonder introduced a 2028 Adjusted EBITDA (AEBITDA) goal of $2.0 billion. The event highlighted several objectives for market share growth, composition, and cash flow improvement initiatives.
Jonas noted that the new AEBITDA target suggests a compound annual growth rate (CAGR) of approximately 10%, considering Grover’s impact. Although Light & Wonder’s shares experienced a slight downturn on Wednesday amid a broader market decline, they performed better than gaming sector comparables. Jonas believes that the $2 billion target aligns with expectations and sees potential for the stock to rise.
In his commentary, Jonas emphasized that Light & Wonder’s stock is currently trading at 8 times the firm’s estimated 2026 EBITDA and less than 6 times the 2028 EBITDA target. These valuations, according to Truist Securities, present an attractive entry point for investors, with the belief that the stock has room to grow based on the company’s financial targets and strategic plans.
The analyst day served as a platform for Light & Wonder to showcase its strategic vision and long-term financial aspirations. With the announcement of their ambitious AEBITDA target for 2028, the company has set a clear financial trajectory for the coming years.
Truist Securities’ endorsement comes as Light & Wonder aims to strengthen its position in the gaming market and enhance shareholder value through its outlined initiatives and growth strategies. The reiterated Buy rating and price target suggest confidence in the company’s ability to meet its financial goals and deliver on its promises to investors.
In other recent news, Light & Wonder reported first-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $0.94, falling short of the projected $1.11. The company’s revenue was $774 million, below the anticipated $807 million. Despite this, Light & Wonder achieved its 16th consecutive quarter of year-over-year revenue growth, with a 4% increase in Gaming revenue to $495 million. The company maintained its full-year 2025 Adjusted EBITDA target of $1.4 billion.
In a strategic move, Light & Wonder completed its $850 million acquisition of Grover Gaming’s charitable gaming business, supported by an $800 million credit facility secured through JPMorgan Chase (NYSE:JPM) Bank. Analyst firms have adjusted their price targets for Light & Wonder, with Benchmark reducing it to $100 and Stifel raising it to $95, both maintaining their respective Buy and Hold ratings. Jefferies also adjusted its price target to $116, retaining a Buy rating, reflecting confidence in the company’s growth strategy.
Light & Wonder’s management has expressed optimism about overcoming tariff-related challenges and continues to focus on expanding its digital sector and premium installed base. The company has also repurchased approximately 1.9 million shares of common stock for $166 million during the quarter. These developments indicate Light & Wonder’s ongoing efforts to strengthen its market position and achieve its financial goals.
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