Light & Wonder (ASX:LNW) delivered solid second-quarter results, with softer revenue growth offset by margin improvement, while fiscal year 2025 guidance was revised slightly lower, Jarden said in a Friday note.

The investment firm shared that the guidance for adjusted earnings before interest, taxes, depreciation, and amortisation (AEBITDA) has been lowered to between $1.43 billion and $1.47 billion, along with net profit after tax and amortisation (NPATA) guidance, which is now expected to come in between $550 million and $575 million, reflecting macroeconomic uncertainty and increased investment.

It added that the company's decision to delist from Nasdaq in the US and shift to a sole Australian Securities Exchange (ASX) listing, alongside a larger $1.5 billion buyback plan, is expected to help cushion potential passive selling pressure.

Jarden sees the earlier-than-expected sole ASX listing driving short-term share price volatility but expects strong long-term fundamentals, with high single-digit AEBITDA and low double-digit NPATA growth over three years.

Downside risks include pre-listing hedge fund shorting, economic or gaming slowdowns, regulatory or legal challenges, talent loss, rising iGaming competition, market share decline, lower game replacements, and adverse litigation, Jarden said.

Upside risks include stronger land-based gains, higher SciPlay average revenue per daily active user, a shift to gaming operations growth, better iGaming openings, and positive index changes, Jarden added.

The investment firm maintained Light and Wonder's buy rating while lowering its price target to AU$183 from AU$188.