LNW - Light & Wonder attracts Neutral rating from Jefferies in first ratings look

2023-04-20 06:50:34 ET

B Riley Securities starts off coverage of Light & Wonder, Inc. ( NASDAQ: LNW ) with a Neutral rating and a 12-month price target of $57 per share.

Analyst David Bain and team think that Light & Wonder ( LNW ) successfully pulled off one of the fastest de-leveraging stories by divesting its lottery and sports betting business at strong valuations. LNW's net leverage was noted to drop from 6.3X in Q4 of 2019 to 3.3X in Q4 of 2022.

Bain also believes LNW brings broad Q1 operating momentum into the current quarter. However. Jefferies' Neutral rating reflects LNW’s premium valuation relative to certain risks like competition and a valuation check.

"We would likely become constructive at lower valuation levels and/or if KPI results indicate significant gaming business market share gains from current levels."

Jefferies assigned a price target of $57 to Light & Wonder ( LNW ).

The Seeking Alpha Quant Rating on LNW is set at Hold.

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