Light & Wonder Inc (ASX: LNW) shares have been out of form over the past 12 months.
This has seen the ASX growth share down 36% from its 52-week high.
While this is disappointing for existing shareholders, it could be a buying opportunity for growth investors.
That's the view of analysts at Bell Potter, who are tipping this gaming technology company's shares to rise strongly from current levels.
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What is the broker saying about this ASX growth share?
Bell Potter was pleased with Light & Wonder's performance during FY 2025. It notes that its profits were ahead of expectations thanks to margin expansion initiatives. The broker explains:
LNW reported AEBITDA [adjusted EBITDA] of US$1,443m, +1% above BPe and VA consensus. [..] LNW reported +4% YoY revenue growth to US$3,314m below BPe of US$3,337m and consensus of US$3,330m, supported by +6% YoY growth in Gaming (BPe +7%), -3% YoY growth in SciPlay (BPe -2%) and +13% YoY growth in iGaming (BPe +11%). Adj. NPATA of US$567m was up +18% YoY (+1% beat vs. BPe). The Nth. Am. install base grew units to 48.33k, ahead of BPe of 48.00k, with the base business growing by 700 units. The beat to consensus was driven by margin expansion initiatives.
Also going down well with the broker was management's outlook commentary. It notes that the ASX growth share is working towards its US$2 billion AEBITDA target and is expecting another year of strong profit growth. It adds:
LNW continues to work towards US$2.0b AEBITDA target. For CY26 LNW forecasts another year of strong Adjusted NPATA and EPSa growth. The company anticipates the shape of earnings to be broadly similar to CY25 reflective of a growing recurring revenue base and industry cyclicality. Strategic investments, tariff costs in Gaming and legacy costs pertaining to legal matters are anticipated in 1H26 (1Q26 in particular.)
Outsized returns
In light of this, Bell Potter has a buy rating and $220.00 price target on the ASX growth share.
Based on its current share price, this implies potential upside of over 75% for investors over the next 12 months.
The broker revealed that it is bullish on the stock due to its belief that artificial intelligence (AI) will not disrupt its business model. It explains:
We rate LNW a Buy due to a compelling GARP profile relative to the ASX 100 and ALL. We expect a continuation in the re-rate observed since the ASX sole listing in November 2025, as long as the company executes on its strategy. We believe LNW's heightened investment in R&D will drive continued growth, particularly in the Premium leased market. Further, we believe LNW's R&D engine is difficult to replicate by AI and therefore gives the company an enduring moat.
