Redburn Atlantic says Light & Wonder’s “transformation” could deliver as much as 40% upside. The firm initiated research coverage of Light & Wonder stock with a buy rating on Tuesday, accompanied by a $104 per share price target. Shares closed at $73.84 on Monday and through Tuesday morning had 29% from the start of the year. The company is responsible for cross-platform gaming on mobile devices and at in-person casinos. LNW YTD mountain Light & Wonder stock. Analyst Andrew Tam said Light & Wonder is well positioned to capture a greater market share of in-person gaming, while repairing its balance sheet is allowing the ecompany “to reinvest in its core product.” “The gaming business remains highly profitable, and ongoing product improvements leave Light & Wonder well placed to retake share within gaming,” Tam said. Tam also highlighted Light & Wonder’s divestiture of its lotteries segment in 2022, which meaningfully slimmed the company and allowed for leaner operations. “The sale proceeds were used to pay down debt, repairing Light & Wonder’s balance sheet.,” he said. “The divestments not only de-levered the business, but also repositioned Light & Wonder towards the faster growing digital segments of social gaming (SciPlay) and online RMG (iGaming).” — CNBC’s Michael Bloom contributed to this report.