Light & Wonder Inc. (ASX: LNW) shares could be dirt cheap right now.
That's the view of analysts at Macquarie, which see major upside potential for this ASX 200 stock.
What is the broker saying?
Macquarie continues to feel positive about the poker machine developer, and rival Aristocrat Leisure Ltd (ASX: ALL), after making site visits to casinos in Las Vegas.
It notes that Aristocrat and Light & Wonder are expected to continue to command high levels of market share in the key market. It said:
There continues to be an expectation for the main slot manufacturers, including Aristocrat, Light & Wonder and IGT, to maintain high levels of share across outright sales and gaming ops. Some smaller slot manufacturers are surprising, but it is hit or miss, and are overall making a case that they should not be held to the same level of standards as the big three (i.e., performance levels) if the industry wants to support competition/innovation.
The broker also highlights that these ASX 200 stocks have underperformed the market year to date. This is despite both companies having positive growth outlooks. Macquarie adds:
The share price performance of the slot manufacturers has been choppy, with both companies underperforming the ASX100 year-to-date. In 2025, Aristocrat's share price has dropped 6% (14% underperformance vs ASX100), whilst Light & Wonder's share price is down 18% (25% underperformance vs ASX100) recently impacted by the ASX primary listing announcement and with ongoing Aristocrat litigation.
Big potential returns
According to the note, Macquarie has reaffirmed its outperform rating and $180.00 price target on Light & Wonder shares.
Based on its current share price of $114.25, this implies potential upside of almost 60% for investors over the next 12 months.
Commenting on its outperform recommendation, Macquarie concludes:
Light & Wonder are positioned to deliver 15%+ annual EPSA growth medium term (MQe = 16% CAGR, 25-28), primarily driven by land-based gaming (i.e., improved ship share/ gaming ops installs supported by game performance), and with iGaming starting to make an increasing contribution to earnings. We see leverage sloping down in years to come, via earnings growth and cash generation, but remaining above 2x for the medium term. Closure of Aristocrat litigation (likely in 2026), and execution towards US$2bn 2028 EBITDA target, all set the scene for a re-rating.
Overall, this could make this stock one to consider buying if you are on the lookout for big returns for your portfolio.
