Light & Wonder (ASX: LNW) faces a trade secret misappropriation case from Aristocrat Leisure (ALL) for two of its games, Jewel of the Dragon and Dragon Train.

Light & Wonder Broker Ratings

01/04/2025

• Citi has maintained its Buy rating for Aristocrat Leisure with a target price of $200.00. The broker explains Aristocrat altered its claim in the trade secret misappropriation case against Light & Wonder to include Jewel of the Dragon and the re-release of Dragon Train. Citi notes Light & Wonder is withdrawing around 300 Jewel of the Dragon units leased in North America and doesn't view this removal as material to earnings.

• Bell Potter has maintained its Buy rating for Aristocrat Leisure while cutting the target price to $197 from $205. The broker notes Light & Wonder is facing a liability of up to US$70-85m after Aristocrat stepped up the legal battle with a wider complaint for misappropriated trade secrets. Bell Potter highlights Aristocrat is "extremely likely" to succeed in its claim and warns recent falls in US consumer sentiment could impact the company.

03/03/2025

• Morgans was impressed with Light & Wonder's 2024 results despite litigation, maintaining an Add rating while raising the target price to $220 from $175. The broker notes the land-based division showed strength in international sales and added 853 units in North American gambling operations. Morgans has increased EPS estimates by 7-8% across FY25-26 largely due to the Grover Gaming acquisition.

27/02/2025

• Macquarie has maintained its Outperform rating for Light & Wonder while raising the target price to $198 from $191. The broker notes the company posted fourth quarter AEBITDA of US$315m with some challenges in land-based gaming and lower-than-expected outright volumes. Macquarie believes Light & Wonder appears set to deliver at least US$1.4bn in 2025 AEBITDA, supported by tailwinds across all verticals and improving cash flow.

• UBS has maintained its Buy rating for Light & Wonder while raising its price target to $198 from $175. The broker views the company's 2024 results as solid, with adjusted NPATA of US$127m in 4Q24 in line with UBS estimates and 5% above consensus. UBS anticipates FY25 adjusted EBITDA of US$1.4bn, supported by continued gaming segment growth, Grover acquisition benefits, and improving revenue yields.

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