Light & Wonder: The Market May Be Overpricing The Risks

Light & Wonder, Inc. is rated Buy, as its discounted valuation and improving cash flow outweigh modest revenue growth and segment headwinds. LNWO's recurring revenue is driven by a growing installed machine base, despite only a 2% increase in average daily revenue per unit. SciPlay's revenue and user base declined, but margin expansion and direct-to-consumer growth partially offset weakness; new leadership may aid recovery.