Earlier this month, The Motley Fool's Samantha Menzies reported on broker Macquarie's view on Light & Wonder Inc (ASX: LNW) and Aristocrat Leisure Ltd (ASX: ALL) shares.
The two gaming stocks operate largely in the US casino industry with a duopoly over the slot machine category.
Yesterday, broker Bell Potter released a new report on the two gaming suppliers.
Lets see what the broker had to say.
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Dominant market share
According to Bell Potter, Light & Wonder titles comprised 44% of the top New Premium Leased & WAP (PLW) game rankings with Aristocrat Leisure following close behind at 38% share of the rankings.
However, weaker visitation and foot traffic data out of the Las Vegas tourist market has shaken
US listed Casino operators and Light & Wonder share prices over the last month, amid a deteriorating US jobs market.
Despite this, the broker suggests the outlook gambling spend remains positive and hence it doesn't expect macro weakness to impact Aristocrat Leisure and Light & Wonder shipments and Fee per Day in CY25e.
Share price movement
Aristocrat Leisure shares have had a turbulent year.
Across January and February its share price rose more than 12% before falling 25% from February to April.
Since then however it has climbed back and now sits almost even to where it started in 2025.
Light and Wonder shares have had a similarly volatile year to date. It is down roughly 4% in that span.
Which does Bell Potter prefer?
Bell Potter said operating momentum for Aristocrat Leisure is superior to Light & Wonder currently, but prefers Light and Wonder shares in the long term.
We continue to prefer LNW over ALL over the longer term due to a compelling GARP profile relative to the ASX 100 (excl.
banks, resources and REITs) and ALL (43% discount to EV / EBITA). In our view, the key catalyst in closing this valuation discount is the ASX sole listing event, which we believe will weigh positively on the stock after December 2025.
It said in the short term however, there are risks for Light & Wonder including possible earnings softness, litigation, and volatility from its Nasdaq delisting, which could also create a good entry point for investors.
Price targets from Bell Potter
The broker has a "buy" rating on both Light and Wonder and Aristocrat Leisure shares.
Its 12 month price target for Aristocrat Leisure shares is $79.00.
From yesterday's closing price of $68.40, this indicates an upside of 15.49%.
Meanwhile, the broker has a 12 month price target on Light and Wonder shares of $176.00.
From yesterday's closing price of $133.51, this indicates an upside of 31.82%.
