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Macquarie tips 60% upside for this ASX 200 stock

How much upside does Macquarie see in this ASX gaming stock?

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Aaron Bell
Aaron Bell began writing for Motley Fool in 2024. Aaron is a finance journalist with a knack for breaking down complex topics into digestible content for the everyday punter. Aaron is passionate about investing and contributing to a healthy dialogue around personal finance, particularly as more Australians look to the share market to build wealth.
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Key points

  • Macquarie reports that Light & Wonder is potentially undervalued, predicting a potential share price increase of over 60% within the next 12 months. 
  • The report highlights positive trends in regional US casino gaming revenues and notes that Light & Wonder can continue to capture market share. 
  • Other sources such as TradingView and Selfwealth also view the stock as undervalued. 

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. 

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%.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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