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This report is an updated version of the report published on 20 May 2024 at 3:16 PM AEST.
Company Overview: Light & Wonder, Inc. (ASX: LNW), formerly known as Scientific Games Corporation (SG), is an American company that offers gambling products and services. The company is based in Las Vegas, Nevada, and provides slot machines, table games, shuffling machines, and casino management systems. Tabcorp Holdings Limited (ASX: TAH) is an Australian gambling and entertainment corporation. It operates in two segments: wagering and media, and gaming services. The Wagering and Media section provides totalizator and fixed odds betting, retail wagering networks, and worldwide racing media enterprises. Kalkine’s Market Event Report covers the Investment Summary, Event Summary, Data Insights & Analysis, Key Financial Metrics, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.
Investment Summary
Event Highlights
Data Insights and Analysis
Key Drivers versus Key Challenges
Based on the above dta, two ASX stocks have been identified to showcase momentum.
1. (ASX: LNW) (Light & Wonder, Inc.)
(Recommendation: ‘Buy’ at AUD 139.500, Potential Upside: Low Double-Digit) (M-cap: AUD 12.74bn)
Company Overview: LNW formerly known as Scientific Games Corporation (SG), is an American company that offers gambling products and services. The company is based in Las Vegas, Nevada, and provides slot machines, table games, shuffling machines, and casino management systems.
The stock is up by ~3.93% in the last 3 months, and over the last 9 months, it has increased by ~22.92%. The stock has a 52-week low and 52-week high of AUD 90 and AUD 167.050, respectively, and is currently trading above the 52-week high-low average.
2. (ASX: TAH) (Tabcorp Holdings Limited)
(Recommendation: ‘Speculative Buy’ at AUD 0.665, Potential Upside: Low Double-Digit) (Mcap: AUD 1.51bn)
Company Overview: TAH is an Australian gambling and entertainment corporation. It operates in two segments: wagering and media, and gaming services. The Wagering and Media section provides totalizator and fixed odds betting, retail wagering networks, and worldwide racing media enterprises.
The stock has witnessed a correction of ~10.53% in last 6 months, and over the past 1 year, it has declined by ~38.18%. The stock has a 52-week low and 52-week high of AUD 0.610 and AUD 1.165, respectively, and is currently trading below the 52-week high-low average. TAH was last covered in a report dated ’9 April 2024’.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 20 May 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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Past performance is not a reliable indicator of future performance.
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