Analysts have raised their price target for Light & Wonder by approximately 10 percent to reflect slightly faster expected revenue growth, a modestly lower discount rate, and a higher anticipated future P/E multiple, partially offset by a marginally softer profit margin outlook.
What's in the News
- The board authorizes a new share buyback plan, alongside a substantial repurchase program of up to 80,234,110 shares valid through June 11, 2027 (company announcement).
- The company completes the repurchase of 7,259,462 shares, representing about 8.37 percent of outstanding shares, for a total of 664 million dollars under the prior buyback (company announcement).
- Light & Wonder confirms delisting from Nasdaq to move to a sole primary listing on the ASX, aligning its capital markets presence with long term strategic plans (company announcement).
- The company is added to the FTSE All World Index and the S&P Global BMI Index following its ASX listing, expanding its presence in global equity benchmarks (index providers).
- Light & Wonder provides an update on ongoing Nevada litigation with Aristocrat, with the court granting expanded discovery on math models for certain games while fact discovery continues into late 2025 (court and company update).
Valuation Changes
- The fair value estimate has risen moderately from approximately $105.73 to $115.95 per share.
- The discount rate has fallen slightly from about 10.08 percent to 9.92 percent, modestly lowering the cost of capital applied in the model.
- The revenue growth assumption has increased slightly from roughly 7.45 percent to 7.65 percent annually.
- The net profit margin assumption has edged down marginally from about 17.04 percent to 16.99 percent.
- The future P/E multiple has risen from around 15.12x to 16.47x, implying a higher valuation placed on projected earnings.
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