LNW: AGM - Maintains Full Year Earnings Guidance

研报英文原文证据摘录

LNW: AGM - Maintains Full Year Earnings Guidance

Light & Wonder, Inc.

Target/Upside/Downside Scenarios Investment summary

Having successfully settled the Dragon Train litigation andLight & Wonder, Inc.

moved to a sole primary listing on the ASX, we believe the

220 125 Weeks 19JAN24 - 11JUN26 company is well positioned to drive incremental share gains in

200 the higher value segments of a resilient gaming market.

TARGETTARGET 170.00170.00 160 Risks to rating and price target

140 Changes in consumer demand: Gaming machine demand

120 CURRENTCURRENT 123.56123.56 tends to be driven by the financial position of the customer

100 and general economic conditions. A strong financial position

80 and benign economic conditions will lead to higher demand

15m for gaming machines under both a Gaming Ops and Outright

10m

5m Sales model and vice versa.

2024 2025 2026

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J

LNW AU Rel. AUSTRALIAN ALL ORDINAIRES MA 40 weeks Changes in consumer preferences: Changes in consumer

Source: Bloomberg and RBC Capital Markets estimates for Target preferences will influence the types of gaming machines that

Valuation the casino customers will purchase.

We value Light & Wonder using a blended average of our DCF Changes in the degree of competition: The Gaming, iGamingand sum-of-the-parts valuations, which is derived from peer and Social Casino markets are very competitive and changes inaverages. Our DCF valuation utilises a WACC of 8.5% and a the degree of competition will influence volumes and pricing.terminal growth rate of 2.5%. Our share price target of $170 The Social Casino sector has been impacted by competitionsupports our Outperform rating. from sweepstakes, although some US states are seeking to ban