Light & Wonder Inc (ASX: LNW) could be an S&P/ASX 200 Index (ASX: XJO) stock that is severely undervalued.
Its share price has fallen more than 22% in the last 12 months.
However, according to a recent report from Macquarie, the share price could rise more than 60% in the next 12 months.
It is a Las Vegas–based global cross-platform gaming company that develops and supplies casino gaming machines, social and mobile games through its SciPlay division, as well as digital real-money iGaming content and platforms.
Today, shares are changing hands for approximately $110.51 each.
However, the broker's target price suggests plenty of upside.
Here's what was in today's report.
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US casino revenue trends
Macquarie's report focused on broader trends in the US casino industry. The broker said US casino gaming revenues were flat year over year (YOY) in September 2025, with regionals +1% YOY but Las Vegas down 5% YOY.
However, the broker said it expects regional casino gaming revenues to show modest growth.
Meanwhile, it expects Las Vegas to be broadly flat.
The broker said it remains constructive on both Aristocrat Leisure Ltd (ASX: ALL) and Light & Wonder.
We remain constructive on the resilience of US gaming revenues in a softening consumer environment based on long-run analysis.
According to Macquarie, the industry backdrop supports both the Gaming Operations segments (variable revenue machines) and outright volumes via operator budgets.
For Light and Wonder, Macquarie said it can continue to win market share, supported by design & development spend, which supports content/hardware commercialisation.
Price target upside for ASX 200 stock
The broker has a target price of $180 on this ASX 200 stock.
This indicates an impressive upside of approximately 63%.
Elsewhere, TradingView has a 12-month price target of $172.20, which indicates more than 50% upside.
Online brokerage platform Selfwealth lists the ASX 200 stock as undervalued by more than 67%.
The same report included a price target of $75 for competitor Aristocrat.
This indicates an upside of approximately 18%.
