Investors looking to allocate $2,500 in August may consider two Australian Securities Exchange (ASX) shares that analysts have identified as strong buy candidates. Both companies, Light & Wonder Inc. and Web Travel Group Ltd, are expected to experience significant growth over the next year, making them appealing options for investors.
Light & Wonder Inc.: A Growing Player in Gaming
Light & Wonder Inc. (ASX: LNW) is a global gaming and entertainment firm that operates in both land-based and digital gaming sectors. This company has shifted its focus towards recurring, content-led revenue streams, which is beginning to accelerate its earnings growth. Analysts at Macquarie Group project that the company could achieve a remarkable $2 billion in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) by 2028. This goal represents a compound annual growth rate (CAGR) of 9.5%.
While Macquarie’s analysts predict an adjusted EBITDA of US$1,941 million by 2028—slightly below the company’s target—they still project this figure to exceed the consensus estimate of US$1,854 million. The brokerage commented, “Light & Wonder is set to deliver over 9.5% average annual adjusted EBITDA growth over the next three years to hit the 2028 US$2 billion target.” Given the current pricing of LNW shares, Macquarie has assigned an outperform rating with a price target of $188.00, suggesting a potential upside of 27% for investors within the next 12 months.
Web Travel Group: A Resilient Travel Technology Firm
Another promising investment option is Web Travel Group Ltd (ASX: WEB), which specializes in travel technology and operates the WebBeds platform. WebBeds serves as a global online marketplace for the travel industry, connecting hotels and travel service providers to a network of buyers worldwide.
Macquarie has recently upgraded Web Travel from a neutral rating to outperform, citing a positive shift in the company’s trajectory. They expect WEB to scale its Total Transaction Value (TTV) significantly, with a target of $10 billion by the end of the fiscal year 2030. The brokerage noted, “Visibility concerning medium-term revenue and UEBITDA margins has improved, and WEB should outperform other ASX travel peers in volatile macro conditions.”
Macquarie has set an outperform rating and a price target of $6.19 for Web Travel shares. Based on the current share price, this indicates a potential upside of 32% over the next year.
Investing in either of these ASX shares could provide significant returns, as analysts highlight their strong growth potential. As always, investors should conduct their own research and consider market conditions when making investment decisions.
