{"id":286251,"date":"2023-08-22T11:05:34","date_gmt":"2023-08-22T16:05:34","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=286251"},"modified":"2023-08-22T21:55:30","modified_gmt":"2023-08-23T02:55:30","slug":"light-wonder-stock-has-fuel-for-more-upside-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/","title":{"rendered":"Light & Wonder Stock Has Big Upside Potential, Says Analyst"},"content":{"rendered":"

Light & Wonder (NASDAQ: LNW) stock is on a torrid pace in 2023, posting a year-to-date gain of 29%. But at least one analyst sees the potential for much more upside.<\/p>\n

\"Light
The Light & Wonder logo. Redburn Atlantic analyst Andrew Tam says the stock has big appreciation potential. (Image: PR Newswire)<\/figcaption><\/figure>\n

In a note to clients on Tuesday, Redburn Atlantic analyst Andrew Tam initiated coverage of the gaming device manufacturer with a \u201cbuy\u201d rating and $104 price target, implying upside of 40% from the August 21 close. In midday trading, shares of Light & Wonder are higher by 2.41% with the help of Tam\u2019s report.<\/p>\n

The gaming business remains highly profitable, and ongoing product improvements leave Light & Wonder well placed to retake share within gaming,\u201d<\/strong> wrote Tam.<\/p><\/blockquote>\n

The Las Vegas-based company recently said it remains on pace to notch adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.4 billion by 2025<\/a>.<\/p>\n

Light & Wonder Asset Sales Applauded by Tam<\/h2>\n

In 2021, the company formerly known as Scientific Games sold its lottery<\/a> and sports betting units \u2014 transactions that raised about $7 billion in cash, driving leverage to 3.1x from 10.5x.<\/p>\n

Wall Street has lauded that balance sheet repair. While lottery businesses are highly profitable, the new, leaner version of Light & Wonder has the resources to focus on higher growth segments. Those moves could pay off for long-term investors.<\/strong><\/p>\n

\u201cThe sale proceeds were used to pay down debt, repairing Light & Wonder\u2019s balance sheet,\u201d added Tam. \u201cThe divestments not only de-levered the business, but also repositioned Light & Wonder towards the faster growing digital segments of social gaming (SciPlay) and online RMG (iGaming).\u201d<\/p>\n

Speaking of SciPlay (NASDAQ: SCPL), Light & Wonder announced earlier this month that it\u2019s acquiring<\/a> the 17% of the social casino developer it doesn\u2019t yet own. That paves the way for a reunion with the company it spun off in 2019. The deal is scheduled to close in the fourth quarter.<\/p>\n

It could prove to be a smart move by Light & Wonder. SciPlay\u2019s revenue jumped 18% in the June quarter, while net income increased 28% year-over-year. The gaming company\u2019s cash-on-hand tally rose $64.8 million to $394.9 million.<\/p>\n

Catalysts for Light & Wonder Stock<\/h2>\n

In addition to using some of the proceeds from the sales of its lottery and sports wagering units to fund digital businesses, Light & Wonder has been a steady buyer of its own shares, indicating that management sees value in the stock. That could be an avenue of support should the broader market turn south.<\/p>\n

Wall Street is bullish on the name, with five of the nine analysts covering it rating the stock the equivalent of a \u201cstrong buy.\u201d<\/strong><\/p>\n

Still, Tam\u2019s $104 price target, the highest on the Street, stands out, as it is well in excess of the consensus Light & Wonder price forecast of $80.25.<\/p>\n","protected":false},"excerpt":{"rendered":"

Light & Wonder (NASDAQ: LNW) stock is on a torrid pace in 2023, posting a year-to-date gain of 29%. But at least one analyst sees the potential for much more upside. In a note to clients on Tuesday, Redburn Atlantic analyst Andrew Tam initiated coverage of the gaming device manufacturer with a \u201cbuy\u201d rating and […]<\/p>\n","protected":false},"author":46,"featured_media":236429,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,69293,22988],"tags":[81903,81890,82927],"acf":[],"yoast_head":"\nLight & Wonder Stock Has Fuel For More Upside, Says Analyst<\/title>\n<meta name=\"description\" content=\"Light & Wonder stock poised for more upside, according to Redburn Atlantic.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Light & Wonder Stock Has Fuel For More Upside, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Light & Wonder stock poised for more upside, according to Redburn Atlantic.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-22T16:05:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-23T02:55:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/LNW2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1544\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/\",\"name\":\"Light & Wonder Stock Has Fuel For More Upside, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/LNW2-scaled.jpg\",\"datePublished\":\"2023-08-22T16:05:34+00:00\",\"dateModified\":\"2023-08-23T02:55:30+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Light & Wonder stock poised for more upside, according to Redburn Atlantic.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/light-wonder-stock-has-fuel-for-more-upside-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/LNW2-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/10\/LNW2-scaled.jpg\",\"width\":2560,\"height\":1544,\"caption\":\"The Light & Wonder logo. 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