LNW - Light & Wonder considers listing shares in Australia

2023-03-20 08:06:57 ET

Jefferies weighed in on the recent development that Light & Wonder ( NASDAQ: LNW ) is considering a listing on the Australian Securities Exchange.

Analyst David Katz noted Light & Wonder is exploring the secondary listing in Australia due to its business activities and current and potential shareholder base in the market. LNW plans to engage with both equity markets in evaluating whether to pursue the listing or not.

"We view the prospective benefits positively with minimal downside. The ASX has a positive history and context from other names, notably ALL, which presently trades at 10X+ NTM EBITDA according to consensus estimates, which is 3-4X higher than the current levels of the US market."

Katz thinks a ASX listing could potentially establish a positive marker for LNW shares in the U.S., although he reminded that a secondary listing can be costly in time and resources.

Light & Wonder Board Chairman Jamie Odell: "The ASX is a premium market with a long track record as a platform for global gaming companies and a deep and liquid pool of sophisticated investors and market participants who have a strong understanding of the gaming business. We believe they will appreciate the value and long-term potential of L&W’s broad international business and strategy. We look forward to engaging with the market and our current shareholders on a potential secondary listing."

The Seeking Alpha Quant Rating on Light & Wonder slipped to Hold from Buy on March 13.

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