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LNWO: Expanded Buyback And ASX Move Will Support Stronger Future Returns

LNW: Free Cash Flow Trends Will Shape Coming Earnings Performance

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LNWO
AnalystConsensusTarget
Not Invested
Published 25 Aug 2024

Update shared on 17 Dec 2025

Fair value Increased 0.33%
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AnalystConsensusTarget's Fair Value
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1Y
8.4%
7D
-7.6%

Analysts have raised their price target on Light & Wonder slightly, from approximately 116 dollars to 116.34 dollars, citing marginal improvements in fair value estimates driven by higher assumed discount rates and a modestly richer future earnings multiple.

What's in the News

  • The Board of Directors authorizes a new share buyback plan, signaling continued commitment to returning capital to shareholders (company announcement).
  • The company launches a major share repurchase program of up to 80,234,110 shares, with authorization running through June 11, 2027 (company announcement).
  • Light & Wonder confirms plans to delist from Nasdaq and move to a sole primary listing on the ASX, aligning its capital markets presence with its strategic focus and shareholder base (company filing).
  • As part of the move toward an ASX sole listing, the Board approves Fourth Amended and Restated Bylaws to align governance, voting standards, and share issuance practices with ASX rules (company filing).
  • A Nevada court grants Aristocrat expanded discovery in ongoing litigation regarding math models used in certain games, extending the fact and expert discovery timelines (court ruling / company update).

Valuation Changes

  • The Fair Value Estimate has risen slightly, from approximately 115.95 dollars to 116.34 dollars. This reflects a marginal upward revision in intrinsic value.
  • The Discount Rate has increased modestly, from about 9.92 percent to 10.08 percent. This indicates a slightly higher required return applied in the valuation model.
  • The Revenue Growth Assumption is effectively unchanged, holding steady at around 7.65 percent. This suggests no material shift in top line expectations.
  • The Net Profit Margin Assumption remains stable, at roughly 17.0 percent. This implies consistent profitability expectations over the forecast horizon.
  • The Future P/E Multiple has risen slightly, from about 16.47 times to 16.59 times. This points to a marginally richer valuation applied to projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.