In a recent report from Macquarie, the broker identified ASX 200 stock Light & Wonder Inc (ASX: LNW) as one with plenty of upside.
New data shows US casino gaming revenues rose during June – good news for this consumer discretionary company.
It engages in the development of technology-based products and services and associated content.
The gaming segment designs, develops, manufactures, markets, and distributes a comprehensive portfolio of gaming products and services.
This is what the broker had to say about this ASX 200 company.
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US Casino optimism
Broker Macquarie highlighted in its report US gaming revenue has been steady.
US casino gaming revenues were +3% yoy in June 2025, with Las Vegas +1% yoy and regionals +3% yoy. 2025 YTD growth is +2% yoy.
The broker said in 2025, it expects regional casino gaming revenues to show modest growth, and Las Vegas to be flat, with a 2H skew.
According to the report, US casino gaming revenues remain resilient, despite general economic uncertainty. Long-run analysis illustrates that casino gaming revenues are relatively insulated from such volatility.
We remain constructive on the resilience of US gaming revenues in a softening consumer environment based on long-run analysis.
Light and Wonder outlook
The company will release its Q2 FY25 results on August 7.
Macquarie said it expects Light & Wonder to post modest Q2 FY25 EBITDA growth of +2% (excluding Grover), before accelerating to +18% in the second half as it recovers from earlier product issues.
The broker believes the company's full-year EBITDA guidance of US$1.4 billion is achievable, implying +12% year-on-year growth.
The ASX 200 company has seen significant share price volatility over the last 12 months and is down 11.09% in that span overall.
Updated price target
The broker has placed an "outperform" rating on the ASX 200 shares and a price target of $188.00.
This indicates an upside of 26.4% from its current share price.
In the same report the broker placed an "outperform" rating and $70.00 price target on rival Aristocrat Leisure Ltd (ASX: ALL) shares. This suggests little upside for the gaming technology company. Its shares closed last week at $69.21 each.
Therefore, in the ASX 200 gaming space, Macquarie currently has a clear preference for Light & Wonder shares.
