The acquisition of Grover Gaming provides Light & Wonder (ASX:LNW) a foothold in the North American ePull Tabs industry, Macquarie said in a note on Tuesday.
Grover has 10,000 ePull Tab machines, with around 60% market share in its five operational states. It is licensed in five of the 11 ePull Tab markets, and there is earnings potential via displacing competition. Indiana is also launching ePull Tabs in July.
Churning the footprint with newer games or cabinets may boost win per day, the note said.
Macquarie has an outperform rating on Light & Wonder with a price target of AU$188.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.