If you are looking for outsized returns for your investment portfolio, then it could be worth checking out the ASX 200 stock in this article.
That's because the team at Bell Potter believes that recent weakness has created a very attractive buying opportunity for investors.
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Which ASX 200 stock?
The stock that the broker is bullish on is Light & Wonder Inc. (ASX: LNW).
It is a leading global cross-platform games company creating poker machines, social casino games on mobile and web platforms, and iGaming content aggregation platforms.
Bell Potter notes that the ASX 200 stock delivered a mixed result this week. It said:
LNW reported -1% YoY revenue growth to US$809m below BPe of US$832m and consensus of US$846m, driven by -1% YoY decline in Gaming (BPe -2%), -2% YoY decline in SciPlay (BPe +7%) and +9% YoY growth in iGaming (BPe +11%). Adj. EBITDA was US$352m (+2% beat vs. BPe). Adj. NPATA of US$135m was up +4% YoY (-6% miss vs. BPe). The Nth. Am. install base (excl. Grover) grew by 845 units to 35.35k, ahead of BPe. The NPATA miss to consensus was driven primarily by timing of international game sales and operator apprehension in North America following Liberation Day tariff turmoil.
Buy the dip
In response to the results, investors sold down the ASX 200 stock by 2% to $133.75, which means its shares are now down by 12% since this time last month.
Bell Potter sees this as a buying opportunity and believes there is major upside ahead for investors.
This morning, the broker has retained its buy rating on the company's shares with a trimmed price target of $178.00 (from $194.00).
Based on its current share price, this implies potential upside of 33% for investors over the next 12 months.
Commenting on its buy recommendation, the broker said:
We put the disappointing 2Q25 AEBITDA guidance downgrade down to tariff related issues and note that macroeconomic risks remain. We point to robust install base growth in 2Q25 and strong game performance as evidence that the thesis of market share gains in the lucrative premium leased segment remains intact.
We see the November 2025 ASX sole listing plan as a key catalyst for a re-rate in the stock but note execution risks exist. At 10x NTM EV/EBIT(A), LNW trades at a ~49% discount to ALL, which we expect to close post Nasdaq listing.
