After falling significantly over the last 12 months, there could be a rebound coming for S&P/ASX 200 Index (ASX: XJO) stocks Light & Wonder Inc (ASX: LNW) and HUB24 Ltd (ASX: HUB).
Both have fallen by more than 20% over the last year; however, new analysis from Bell Potter suggests they could offer value right now.
Here's what the broker had to say.
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Light & Wonder a monster discount
Light & Wonder develops technology-based products and services, along with associated content.
In yesterday's report, the team at Bell Potter highlighted that conditions may be favourable for the company over the next 12 months.
The American Gaming Association reported an overall improvement in conditions for gaming operators and suppliers. Notably, 63% of the surveyed gaming executives expected growth in capital investment over the next 6-12 months, a substantial increase on prior surveys. Further, a net positive of 60% and 20% of Suppliers expected growth in replacement and expansion sales, respectively. Overall, these results leave us less concerned with operator capex spend in CY26.
The broker believes the ASX 200 stock offers compelling value at 9 times EV/EBIT(A), given its growth metrics.
Hub24 a compelling option
Hub24 is a diversified financial services business. The company's core platform segment develops and provides an administrative services platform to financial advisers, stockbrokers, accountants, and their clients.
Bell Potter provided fresh guidance on the company after it released quarterly results yesterday.
As reported by The Motley Fool team, the company announced record net inflows of $18.9 billion in FY26, up 20% on the prior comparable period (pcp), and total funds under administration (FUA) hitting $164.3 billion, up 20% on pcp.
Overall, Bell Potter said HUB24 delivered a solid quarter, even though growth slowed a little.
The underlying business remains healthy, superannuation growth is improving, and Bell Potter still sees HUB24 as being on track for solid long-term growth.
Class is improving, with superannuation net inflows growing as a share, and boosting the result. The addition of retirement income streams (TAL) should support this trend and the result leaves FY27 target parts intact.
How much upside is there for these ASX 200 stocks?
In yesterday's reports, the team at Bell Potter retained its buy recommendations for both ASX 200 stocks.
The broker has a price target of $110 for Hub24 shares.
This indicates an upside potential of just over 35% for the ASX 200 stock.
Meanwhile, it has a price target of $190 on Light & Wonder shares.
This indicates an upside of nearly 72% for the gaming company.
