S&P/ASX 200 Index (ASX: XJO) stocks closed higher on Tuesday, up 0.17% to 8,579.7 points.
In this article, we reveal analysts' latest opinions on ASX gaming stocks, including sector leader Aristocrat Leisure Ltd (ASX: ALL).
Let's take a look.
ASX gaming stocks: Buy, hold, or sell?
Let's start with the ASX gaming sector leaders.
Aristocrat Leisure Ltd (ASX: ALL)
This Australian poker machine and digital games developer is the largest ASX gaming stock with a market capitalisation of $36 billion.
The Aristocrat share price closed at $58.06 on Tuesday, down 0.6%.
Last month, Aristocrat revealed an 11% increase in revenue to $6,297 million for FY25.
Morgans responded by raising its rating from accumulate to buy and cutting its 12-month price target from $77 to $73.
The broker commented:
Headline numbers were broadly in line with both our and market expectations, though a few soft spots emerged beneath the surface.
Encouragingly, management expects the business to return to its normalised growth range moving forward.
UBS reiterated its buy rating following Aristocrat's results, with a price target of $72.70.
Light & Wonder Inc. CDI (ASX: LNW)
Light & Wonder is a US company and the second-largest ASX gaming stock with a market cap of $12 billion.
The Light & Wonder share price finished the session at $153.27, up 0.3% yesterday.
Morgans has a buy rating on Light & Wonder shares with a price target of $175 following the company's 3Q FY25 results.
The broker said:
LNW delivered record margin expansion across all three segments, with iGaming operating leverage the standout performer, while land-based margins surprised on favourable product mix as Grover scales and premium installed base momentum continues.
UBS reiterated its buy rating on this ASX gaming stock with a much more ambitious price target of $206.
If you prefer small-caps…
Jumbo Interactive Ltd (ASX: JIN)
Australian lottery and online gaming services provider Jumbo Interactive has a market cap of $675 million.
Jumbo Interactive shares closed at $10.76 on Tuesday, up 1%.
Morgans noted substantial M&A activity in October as part of the company's pivot from the business-to-business (b2b)/software-as-a-service (SaaS) segment to the higher-growth business-to-consumer (b2c) market.
Jumbo acquired the UK's Dream Car Giveaways, and bought its first US competition, the Dream Giveaway, in October.
The broker maintained its buy recommendation on Jumbo Interactive shares and lifted its price target from $15.90 to $16.60.
Morgans said:
We view this as disciplined capital allocation: Acquiring proven profitable assets at reasonable multiples with clear operational improvement pathways.
The two B2C acquisitions combined add a base line A$24m in pro-forma EBITDA.
Jarden reiterated its buy rating with a price target of $13.40 to $13.70 on the ASX gaming stock.
Morgan Stanley also has a buy rating but is more optimistic on share price growth with a $16.80 target.
betr Entertainment Ltd (ASX: BBT)
Morgans reckons sports and racing betting group betr Entertainment is a great buy.
The ASX gaming stock touched a 52-week low of 21 cents on Friday, down 25% over the past year.
Yesterday, Betr shares closed at 22 cents, up 4.8%.
Morgans maintained a buy rating on betr shares after the company reported a 27% lift in turnover for 1Q FY26.
The broker said:
Turnover, gross win, and net win margins all exceeded forecasts, supported by improved customer engagement and product mix.
We take encouragement that the recent lift in brand and product investment is now translating into operating momentum.
The balance sheet remains in a strong position, providing flexibility to pursue both organic and inorganic growth opportunities.
The broker has a price target of 43 cents on the ASX gaming stock, suggesting a potential doubling of the share price over the next year.
Betr Entertainment has a market cap of $218 million.
