Beyond The Numbers: 8 Analysts Discuss Light & Wonder Stock

In the last three months, eight analysts have provided ratings for Light & Wonder (LNW), with a mix of bullish, bearish, and indifferent perspectives; the average price target is $101.0, a 5.06% decrease from the previous average. Recent analyst actions include Macquarie raising its outperform rating with a price target of $122, while Benchmark lowered its buy rating to $100, and Mizuho raised its underperform rating to $84. Light & Wonder's financials show solid revenue growth of 2.38% and strong net margin and ROE, but a higher-than-average debt-to-equity ratio indicates a higher level of financial risk.

Analysis

Light & Wonder (LNW) presents a mixed profile based on recent analyst assessments and financial metrics. Over the past three months, eight analysts have provided ratings, culminating in an average 12-month price target of $101.0, a figure that has declined by 5.06% from the prior average. The current distribution of these ratings is two 'Bullish', two 'Somewhat Bullish', three 'Indifferent', and one 'Somewhat Bearish', with price targets ranging from a low of $84.00 to a high of $122.00. Notably, activity in the last 30 days consisted of a single 'Somewhat Bullish' rating update. Recent specific analyst actions underscore this divergence: Macquarie raised its target to $122.00 maintaining an 'Outperform' rating, while Benchmark lowered its 'Buy' rating target to $100.00, and Mizuho, despite raising its target to $84.00, reiterated an 'Underperform' rating. Financially, LNW exhibits strengths such as a market capitalization exceeding industry peers, a net margin of 10.59%, and a return on equity (ROE) of 13.06%, both surpassing industry benchmarks. The company reported revenue growth of approximately 2.38% as of March 31, 2025. However, this growth trails the average for its peers in the Consumer Discretionary sector, and LNW carries a significantly higher-than-average debt-to-equity ratio of 6.35, indicating increased financial risk. LNW operates primarily as an electronic gaming machine manufacturer, with its SciPlay division (casual mobile games) contributing about a fourth of revenue, and a developing iGaming business.

Key Decisions for Investors

• Investors should acknowledge the varied analyst sentiment, evidenced by the mixed ratings and a 5.06% decrease in the average price target to $101.0, suggesting a cautious and balanced investment approach.
• It is crucial to weigh Light & Wonder's strong profitability indicators, such as its 10.59% net margin and 13.06% ROE, against potential concerns like its 2.38% revenue growth lagging sector peers and a high debt-to-equity ratio of 6.35, which implies greater financial leverage.
• Monitoring future analyst revisions and their underlying rationales, especially contrasting views like Macquarie's $122.00 'Outperform' target versus Mizuho's $84.00 'Underperform' target, will be important for gauging evolving market expectations for LNW.