Rizwan Siddiqui
2 min read
In This Article:
Light & Wonder Inc. (NASDAQ:LNW) is one of the top 10 picks from Harvard University’s stock portfolio. The stock’s position in Harvard Management Co.’s portfolio is down approximately 27% quarter-over-quarter, but still commands around 8% of the portfolio’s weight.
On June 4, following meetings with Light & Wonder’s SVP of Investor Relations, Nick Zangari, at the Stifel Cross Sector Insight Conference, a Stifel Nicolaus analyst reaffirmed a Hold rating on the stock, with an unchanged price target of $95.
The analyst noted that management remains committed to achieving its 2028 Adjusted EBITDA goal of $2 billion, despite the overall addressable market for its core business appearing stable rather than expanding. Near-term trends in regional gross gaming revenue have been encouraging, supporting the company’s projections for North America.
Research and development remains a strategic focus, with early progress suggesting better returns. That, in turn, is helping the company stay aligned with its longer-term market share ambitions. The analyst also noted that industry consolidation could give Light & Wonder additional room to grow.
However, he flagged a few concerns as well. Firstly, the comparisons against last year’s performance are expected to be more challenging in the coming quarters, and broader macro conditions remain unpredictable. He also noted that demand for slot machine replacements could soften, which may weigh on results depending on how the cycle plays out. While management sounds confident about its roadmap, these factors justify the analyst’s reiteration of a neutral view on the stock for now.
Light & Wonder Inc. (NASDAQ:LNW) is a Las Vegas, Nevada-based, cross-platform global games company with a focus on content and digital markets. The Company creates content and products for land-based casino gaming, social, and digital organizations.
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