Jefferies Analyst Bullish on Light & Wonder, Citing Strong Growth Potential

Jefferies Equity Research analyst David Katz has confirmed his positive outlook on Light & Wonder’s future after meeting with the company’s top leaders. 

Katz Reaffirms ‘Buy’ Rating for Light & Wonder, Raises Price Target

Katz kept his “Buy” advice for Light & Wonder’s stock in a recent note to investors. The stock traded at $110.82 when he wrote his report on September 17. His faith in the company’s prospects comes from the leadership team’s belief that they can speed up business growth and reach their goal of $1.4 billion in cash flow by 2025.

Katz believes Light & Wonder has the right systems to grow and reach its big goals. He thinks they will do well so he upped his price target for the company’s shares from $116 to $128. A big overseas order for games played a part in this positive change. While this order might not make as much profit per unit, it should boost overall sales.

The analyst points out that the company’s US business, its network of gaming machines, is doing fine. He expects more growth in other countries in Asia and Australia. These areas want more of Light & Wonder’s slot machines and game content, which will help the company’s worldwide standing.

Katz Highlights Social Gaming as Key Growth Driver for Light & Wonder’s 2025 Goals

Gaming machines continue to be a key part of Light & Wonder’s operations, but Katz pointed out that the company is now paying more attention to social gaming. The top brass sees this area as crucial to growth stressing the need to boost both what the company offers and how they do it. Katz mentioned that he thinks the social gaming side of things plays a big role in why the company feels sure it will meet its money goals for 2025.

Besides social gaming, the company’s real-money iGaming division also stands to gain from more advanced game development tactics over time. Yet, Katz noted that iGaming has grown slower in the US where a few states have made it legal. Despite these hurdles, Light & Wonder’s future in this field looks bright.

Katz cut his revenue forecast for Light & Wonder in 2024 to $3.2 billion but kept his cash-flow estimate for the year almost the same. His predictions for 2025 saw small increases showing his faith in the company’s ability to grow.