Industry analysts are bullish on Light & Wonder achieving its 2025 annualized EBITDA target of US$1.4 billion, while the impending acquisition of the charitable gaming assets of US-based Grover Gaming are also seen as value accretive.
In a note, Macquarie analysts led by Chad Beynon said they “remain confident that the US$1.4 billion 2025 EBITDA target remains achievable without contribution from [the Grover] acquisition, driven by Gaming momentum, double-digit iGaming growth, and steady SciPlayprofitability.”
In a separate note, Truist Securities said Light & Wonder continues to execute its path towards US$1.4 billion in 2025 Adjusted EBITDA but wants to penetrate gaming adjacencies as avenues for future growth.
“We think the acquisition today enhances Light & Wonder’s growth outlook as the company looks to further penetrate adjacent markets by leveraging its existing R&A without taking on significant incremental costs,” it said.
“Other opportunities for growth include international markets (e.g. Asia) and continued performance from social which is closer to competitor monetization rates.
“Industry consolidation should also benefit the more stable Light & Wonder as well as the return of Dragon Train 2.0.”
Truist analysts also believe the acquisition of Grover Gaming’s charitable assets will add at least US$3 per share of equity value, even if earn-out doesn’t achieve targets.
RelatedPosts
