Where Light & Wonder Stands With Analysts

Light & Wonder LNW underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $106.25, a high estimate of $115.00, and a low estimate of $92.00. This current average reflects an increase of 10.68% from the previous average price target of $96.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of Light & Wonder by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Light & Wonder. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Light & Wonder compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Light & Wonder's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Light & Wonder's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Light & Wonder analyst ratings.

Unveiling the Story Behind Light & Wonder

Light & Wonder is principally an electronic gaming machine manufacturer, selling machines to pubs, clubs, and casinos. The firm is licensed in most jurisdictions allowing gambling globally. Light & Wonder is one of the top three largest players in the space along with International Game Technology and Aristocrat Leisure. SciPlay, about a quarter of revenue, develops and distributes casual mobile games, principally in the social casino niche. The more nascent iGaming business sits between these two businesses, providing digital content and capabilities to real-money gaming providers.

Light & Wonder: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Light & Wonder's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.81% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.26%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.47%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Light & Wonder's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.27% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Light & Wonder's debt-to-equity ratio is below the industry average at 4.07, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.