Morgans rates LNW as Add

Published: 2025-05-11 20:30:05 ET LNW

Published on 05/11/2025 at 20:30

Light & Wonder's 1Q25 result came in slightly below Morgans' expectations, with adjusted earnings (EBITDA) up by 11% to US$311m, driven by margin expansion across all segments.

Despite macro uncertainty and tariff concerns, highlights the broker, management reiterated its FY25 adjusted earnings target of US$1.4bn and profit (NPATA) guidance of US$565-635m.

Morgans views recent share price weakness as a compelling entry point, with the Investor Day on 20 May and a potential ASX primary listing as key catalysts.

Morgans retains an Add rating on Light & Wonder with a $193 target price.

Sector: Consumer Services.

Target price is $220.00.Current Price is $126.35. Difference: $93.65 - (brackets indicate current price is over target). If LNW meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges - negative figures indicate an expected loss).