Why this growing ASX 200 stock could rise 60%+

If you are looking for outsized returns, then it could be worth checking out the ASX 200 stock in this article.

That’s because the team at Bell Potter believes this growing company could rise over 60% between now and this time next year.

Which ASX 200 stock?

The stock that Bell Potter is tipping as a buy is Light & Wonder Inc. (ASX: LNW).

It is a leading global cross-platform games company that operates three segments in the gaming sector.

Bell Potter notes that these divisions include land-based gaming, where it is a top three supplier of slot machines in the outright sales and lease markets and the number one supplier of both casino management systems and table products.

There is also the SciPlay business, which is a top three developer and publisher of social casino games on mobile and web platforms.

The final division is the iGaming division, which is a leading supplier of real money online gaming content and iGaming content aggregation platforms. It operates globally with over 67% of its revenue historically derived from the US.

What is the broker saying?

Bell Potter was relatively pleased with the ASX 200 stock’s performance in FY 2025. It said:

LNW reported +4% YoY revenue growth to US$3,314m below BPe of US$3,337m and consensus of US$3,330m, supported by +6% YoY growth in Gaming (BPe +7%), -3% YoY growth in SciPlay (BPe -2%) and +13% YoY growth in iGaming (BPe +11%). Adj. NPATA of US$567m was up +18% YoY (+1% beat vs. BPe). The Nth. Am. install base grew units to 48.33k, ahead of BPe of 48.00k, with the base business growing by 700 units. The beat to consensus was driven by margin expansion initiatives.

It was also pleased to see that management has reiterated its earnings target. The broker adds:

LNW continues to work towards US$2.0b AEBITDA target. For CY26 LNW forecasts another year of strong Adjusted NPATA and EPSa growth. The company anticipates the shape of earnings to be broadly similar to CY25 reflective of a growing recurring revenue base and industry cyclicality. Strategic investments, tariff costs in Gaming and legacy costs pertaining to legal matters are anticipated in 1H26 (1Q26 in particular.)

Time to buy

According to the note, Bell Potter has retained its buy rating on the ASX 200 stock with a trimmed price target of $220.00 (from $230.00).

Based on its current share price of $134.21, this implies potential upside of 64% for investors over the next 12 months.

Bell Potter believes that Light & Wonder represents a great example of growth at a reasonable price (GARP). It concludes:

We rate LNW a Buy due to a compelling GARP profile relative to the ASX 100 and ALL. We expect a continuation in the re-rate observed since the ASX sole listing in November 2025, as long as the company executes on its strategy. We believe LNW’s heightened investment in R&D will drive continued growth, particularly in the Premium leased market. Further, we believe LNW’s R&D engine is difficult to replicate by AI and therefore gives the company an enduring moat.

The post Why this growing ASX 200 stock could rise 60%+ appeared first on The Motley Fool Australia.

More reading

• 3 Australian growth stocks to buy in 2026
• 5 things to watch on the ASX 200 on Friday
• Light & Wonder FY25 profit rises on Gaming and iGaming strength
• Are this gaming company’s shares a buy ahead of results tomorrow? One broker certainly thinks so
• 3 out of favour ASX 200 shares that could be worth a look today

Motley Fool contributor James Mickleboro 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.