Light & Wonder price target raised to $104 from $90 at Stifel

Stifel raised the firm’s price target on Light & Wonder to $104 from $90 and keeps a Hold rating on the shares after the company announced an agreement to acquire Grover Charitable Gaming, a leading vertically integrated charitable electronic pull-tab machine provider, for $850M upfront in cash with a $200M four-year revenue-based earnout that the company expects to fund with debt financing as well as cash on hand. The firm has “mixed thoughts on the transaction,” noting that the deal should prove headline accretive year one, but it also believes the purchase price and accretion may understate the full investment needed to upgrade existing footprint and unlock topline synergies.