ASX gaming shares could be a great place to look for investments with growth potential. A fund manager has picked out a name in the gaming sector that could do well: Light & Wonder Inc (ASX: LNW).
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What is Light & Wonder?
It describes itself as an American company that creates content and products for land-based casino gaming, and social and digital organisations worldwide.
It says it's the market-leading table games business, and also explains that
"as the frontrunner in table game technology, Light & Wonder's ever evolving slate of innovative table games, shufflers, payment solutions, chip sorters, electronic displays, and other high-tech solutions takes table game performance to the next level."
It has locations in every populated continent – it's truly a global business.
Why is this stock a good ASX gaming share?
Fund manager Wilson Asset Management (WAM) announced its third-quarter FY23 result, which revealed its tenth consecutive quarter of consolidated revenue growth. The headline figure was growth of 13% year over year, with double-digit growth across all segments, including gaming, iGaming and SciPlay.
WAM said the company has hired over 60 former employees of ASX-listed Aristocrat Leisure Limited (ASX: ALL), including the "well-regarded" Light & Wonder CEO Matt Wilson, who had been at the company for over 15 years.
Since joining Light & Wonder, Matt Wilson has "brought a business strategy similar to what drove the success of Aristocrat Leisure, significantly lifting investment in game design, content and monetising across multiple platforms."
WAM explained why it's bullish on the ASX gaming share. It believes the company is "approaching an inflection point, with strong signs of success in recent game launches and forward indicators such as industry surveys highlighting the opportunity for market share gains."
The fund manager believes the company is "undervalued versus global peers and see the potential for earnings upgrades at its full-year result in January."
