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.

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.

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