RBC Capital has opened coverage on Light & Wonder Inc. with an Outperform recommendation and assigned a price target of AUD190.00. The research note indicates the valuation implies approximately 41% upside from prevailing share prices. The coverage was authored by analyst Mark Wilson.
The bank’s note points to the company’s ability to capture additional market share in higher-value segments of what it describes as a resilient gaming market. RBC Capital underscored Light & Wonder’s gross profit margin of 73% as supportive of its competitive position, and referenced InvestingPro data that categorizes the stock as currently trading below its Fair Value estimate.
On valuation metrics, Light & Wonder is presented as trading on a FY26e enterprise value-to-EBITDA multiple of 8.3x when adjusted for stock-based compensation, and on a price-to-earnings multiple of 11.5x. For comparison, the note lists Aristocrat at 10.5x and 16.7x on the same respective metrics.
RBC’s initiation comes amid several company developments. Light & Wonder has settled the Dragon Train litigation and consolidated to a sole primary listing on the Australian Securities Exchange. The company also amended its credit agreement to include a new $2.13 billion term loan tranche that matures in April 2029; the amendment additionally reduces the interest rate margin on these loans, improving the borrowing terms described in the note.
Other broker activity referenced in the same update includes Benchmark raising its price target for Light & Wonder from $90 to $110 while keeping a Buy rating following the firm’s shift to a standard listing on the ASX. The RBC initiation reiterates the Outperform view with a price target cited as $190 in the analyst communication.
RBC’s commentary centers on margin strength, relative valuation, and the company’s recent financing and listing actions as the principal factors underpinning its positive stance. The note projects that these elements support the firm’s expectation of incremental share gains within higher-value market segments.
No forward-looking forecasts beyond the referenced FY26e multiples or additional financial projections were provided in the initiation note excerpted in the update.