Trump announces trade deal with EU following months of negotiations
On Thursday, Truist Securities expressed continued confidence in Light & Wonder (NASDAQ:LNW), maintaining a Buy rating and a price target of $115.00. The affirmation comes after Light & Wonder addressed its ongoing litigation with Aristocrat in an investor call. Despite a 10% decline in Light & Wonder shares over the past week, Truist Securities analyst Barry Jonas believes the investor call has helped mitigate concerns among investors.
Light & Wonder has been proactive in response to the expanded litigation, removing any games from its portfolio that could be considered questionable, even though the financial impact is deemed immaterial. The company’s swift action underlines its broad content diversification strategy. Additionally, Light & Wonder has reiterated its 2025 target for $1.4 billion in adjusted EBITDA, reinforcing its financial goals amidst the current legal challenges.
Jonas noted that while the share price had rebounded from the initial impact of the Dragon Train injunction in September, the recent amended complaint from Aristocrat added some less material games to the dispute. He believes that the investor call should alleviate concerns of a wider impact, which he refers to as ’contagion’ fears, as the company has clearly articulated its defense. Recent market data shows the stock has experienced a -7.46% return over the past week, though it maintains a positive 6.45% return year-to-date.
Despite the positive outlook, Jonas mentioned that Light & Wonder did not address wider tariff uncertainty during the investor call, which could affect the company’s performance. Nonetheless, he anticipates that the shares will likely outperform given the current developments, although he acknowledges that the company is not immune to broader market uncertainties.
Truist Securities has made no changes to its price target or estimates for Light & Wonder at this time, suggesting a steady outlook for the company’s stock. The analyst’s comments reflect a belief that the recent legal proceedings and the company’s clear communication to investors have not altered the firm’s positive view of Light & Wonder’s financial prospects.
In other recent news, Light & Wonder reported its fourth-quarter financial results for 2024, revealing a slight miss in revenue but surpassing expectations for Adjusted EBITDA. The company confirmed its 2025 Adjusted EBITDA guidance at $1.4 billion, supported by strategic investments in key areas like Gaming, SciPlay (NASDAQ:SCPL), and iGaming. Light & Wonder is also in the process of acquiring Grover Gaming, with the deal expected to close in the second quarter of 2025. Analysts have responded to these developments with varied opinions. Benchmark raised its price target for Light & Wonder to $130, maintaining a Buy rating, while Macquarie increased its target to $125, keeping an Outperform rating. Meanwhile, Mizuho (NYSE:MFG) lifted its price target to $80 but maintained an Underperform rating, citing mixed performance in the Gaming Operations segment. Stifel, on the other hand, reduced its price target to $93, maintaining a Hold rating due to concerns over ongoing litigation risks. Despite these challenges, Light & Wonder reaffirmed its financial targets for 2025 and continues to pursue expansion into international markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.