Light & Wonder Faces Target Cuts as Analysts Eye EBITDA Risks, Despite Buy Ratings

Light & Wonder Inc. (NASDAQ: LNW) is one of the best cheap growth stocks to buy according to analysts. On August 8, 2025, Benchmark analyst Mike Hickey maintained a Buy rating on the stock but trimmed his price target from $100 to $90.

One day earlier, on August 7, JPMorgan downgraded Light & Wonder from Overweight to Neutral and lowered its price target from $108 to $95. JPMorgan analysts expressed concern about the company’s ability to meet its full-year 2025 EBITDA target through organic growth alone.

Light & Wonder Faces Target Cuts as Analysts Eye EBITDA Risks, Despite Buy Ratings

The updated guidance includes EBITDA contributions from a recent acquisition. To hit the midpoint of that target, Light & Wonder would need to grow EBITDA by about 15% in the second half of 2025, a noticeable acceleration from its reported growth of 11% in Q1 and 7% in Q2. The firm also flagged uncertainty around free cash flow and leverage.

Macquarie also updated its position on August 7, maintaining its Outperform rating but cutting its price target from $122 to $117.

Light & Wonder Inc. (NASDAQ: LNW), headquartered in Las Vegas, Nevada, is a global developer and supplier of content and technology for the gaming and lottery industries. The company operates across three business segments: gaming, iGaming, and SciPlay, and provides hardware, systems, and digital platforms to casinos and online operators worldwide.

While we acknowledge the potential of LNW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LNW and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.