Why are Light & Wonder shares flying 9% higher today?

Light & Wonder Inc (ASX: LNW) shares have rebounded around 9% in Tuesday lunchtime trade.

At the time of writing, the ASX gaming shares are changing hands at $112.57 a piece.

The rebound is good news for investors after the stock tumbled around 39% from an all-time high in early January. 

Despite the latest rebound, Light & Wonder shares are still down around 28% for the year-to-date and 24% below trading levels seen this time last year.

What has happened to Light & Wonder shares today?

There hasn't been any price-sensitive news out of the company today to explain the latest increase, but Light & Wonder has posted an update to the ASX this morning which could have helped reinvigorate investor confidence in the company's outlook.

The company announced that it plans to release its financial results for the Q2 FY26, ending 30 June, before the ASX opens on the 5th of August.

Also as part of the announcement, the company reiterated its 2026 outlook and said it continues to expect mid-to-high single-digit growth consolidated adjusted EBITDA growth for the year, despite broad macroeconomic uncertainty.

The company also confirmed it is committed to deleveraging its balance sheet toward the mid-point of its targeted net debt leverage ratio range during 2026, and to below 3.0x in the first half of 2027, subject to the continuation of share repurchases. 

Approximately US$180 million remains under its ongoing share repurchase program. 

Do brokers rate the ASX gaming stock as a buy, sell or hold?

The experts are uniformly bullish about the outlook for Light & Wonder shares over the next 12 months. And it looks like we could see a huge upside ahead, even after today's share price spike.

Market Index data shows that brokers agree a strong buy consensus on the stock, and the $192.75 target price implies a 72% upside ahead.

TradingView data shows that some experts are even more bullish. The majority (20 out of 23) have a buy or strong buy rating on the shares. Another three have a hold rating.

The average target price is a little lower, at $176.2, but it still implies a potential 57% upside ahead, at the time of writing. But some analysts forecast that Light & Wonder shares could fly up to 99% higher to $222.79 over the next 12 months.

My view on Light & Wonder shares

Light & Wonder has been reshaping its business in recent years, focusing on recurring revenue and higher-quality earnings. If the company's next results are able to confirm that execution has continued improving and there is potential to build value over the long term, investor confidence and its share price will follow suit.

The post Why are Light & Wonder shares flying 9% higher today? appeared first on The Motley Fool Australia.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026